[Verse 1]
When companies need cash to grow and expand
They borrow from banks with a debt in their hand
But how much is safe, how much is too steep?
These ratios tell us what secrets they keep
[Chorus]
Debt-to-equity shows the balance scale
Interest coverage keeps the ship from failing
Debt ratios paint the picture clear
Solvency ratios calm investor fear
D-E, I-C, debt ratios three
Keys to unlock financial stability
[Verse 2]
Take total debt and equity's might
Divide them up to see the fight
If debt's too high and equity's small
The company might be headed for a fall
[Chorus]
Debt-to-equity shows the balance scale
Interest coverage keeps the ship from failing
Debt ratios paint the picture clear
Solvency ratios calm investor fear
D-E, I-C, debt ratios three
Keys to unlock financial stability
[Verse 3]
Interest coverage tells another tale
Can earnings pay the interest without fail?
Divide earnings before interest and tax
By interest expense to see if they've got your back
[Bridge]
Total debt to total assets shows the load
How much of everything is debt they owe
Lower ratios mean they're standing strong
Higher numbers sing a warning song
[Chorus]
Debt-to-equity shows the balance scale
Interest coverage keeps the ship from failing
Debt ratios paint the picture clear
Solvency ratios calm investor fear
D-E, I-C, debt ratios three
Keys to unlock financial stability
[Outro]
Before you invest, check these three
Solvency ratios set your money free
Debt-to-equity, coverage, and debt
Smart investing with no regret