What do debt management ratios tell us about a firm what, Finance Basics

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What do debt management ratios tell us about a firm what

Question: 1. What do debt management ratios tell us about a firm? What are the most commonly used ratios that measure a firm's liquidity?

2. What is the major limitation of leverage ratios (such as the debt ratio and long-term debt ratio) that are based solely on the balance sheet items?

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