Directives on various aspects of banking practice issued by the EU Parliament and Council of Ministers.
Ratio analysis is the use of accounting ratios to evaluate a company's operating performance and financial stability. Examples include return on capital employed and gross profit percentage for profitability assessment. Additionally, the liquid ratio examines solvency, while gearing ratios evaluate the company's financial structure.
A crucial financial ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses for the same period.
