(2) Liquidity and solvency liquidity current ratio X2, total debt/ebitdaX3. The higher the current ratio, the faster the turnover of the enterprise's current assets and the stronger the ability to repay the current liabilities. However, it should be noted that the indicator is too high, indicating that the enterprise's capital utilization efficiency is relatively low, which is not conducive to the business development. Total debt/ebitda refers to the size of total debt relative to the current year's interest, tax, and pre-discount earnings. The ratio of total debt to ebitda reflects the pre-tax profit created by the enterprise and the depreciation expense of fixed assets and amortization expenses remaining within the enterprise, which is guaranteed to the total debt before interest is paid. The smaller the indicator, the stronger the ability of enterprises to repay debt, on the contrary, the ability of enterprises to repay debt is weaker.
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