 Long-term liquidity ratio tells us that how much liquid affirm is in paying off its long-term debt. These ratios tell us that how much funds have affirm in its long-term assets in order to pay its long-term obligations. In this class, we have total debt ratio. To determine total debt ratio of a firm, we divide its total debt over its total assets. Let's take an example. If a firm has a total debt of 1.2 million and total assets of 2 million, if we divide total debt with the total assets, we get a ratio of 0.60. This means that 60% of its total assets have been financed through the portion of long-term debt. Similarly, there is another ratio and that is debt equity ratio. To determine this ratio, we use total debt and total equity and divide total debt with the total equity. Using a total debt of 1.2 million and a total equity of 0.797 million, we get a ratio of 1.51. This ratio tells us that the firm has 151% excess debt over its total equity. This means that for every 1 rupee invested by owners in the assets of the business, 1.51 rupee have been invested by creditors in the long-term assets of the firm. Apparently, the total debt is 150% excess of the equities and this seems a difficult condition for the company in long-term if the company fails to pay its long-term debt. A similar version of debt equity ratio is equity multiplier. This means that how much multiple of equity has been invested in total assets of the firm. Two variables of this ratio are total assets and total equity. Like if we have total assets of 2 million and total equity of 0.797 million and we divide total assets with the total equity, we get a ratio of 2.51. This means that an amount of 2.51 of 1 rupee equity has been invested in the total assets of the business. So, what is the relationship of this ratio with that total debt or long-term debt? If we add to the total debt, these are increased in the total assets letting the equity same. So, equity works as a multiplier. We can determine this equity multiplier adding that equity ratio to a number of 1 and answer we get the same. Then we have time interest earned ratio or tie ratio. This ratio tells us that how much profit before interest has a firm earned in order to cover its interest on its various debt. The formula of this ratio is earnings before interest and interest expense. If we have a bit of 399,000 and interest expense of 35,000 we divide a bit over interest expense and we get a ratio of 11.41. We will call it as 11.41 times. This means that the firm has 11.41 times in profit of its interest. Or simply we can say that firm has earned so much profit that it can pay off its interest expense more than 11 times but surely this doesn't happen. To me the minimum benchmark for this ratio should be the one. This means that a firm at least earnings before interest just equal to its interest expense so can it cover its interest expense safely. A refined version of tie ratio is cash coverage ratio. This ratio tells us that how much cash a firm has generated from its operations in order to pay off its interest expense. To determine this cash coverage ratio we use a unique variable of EBITDA or EBITDA. This means earnings before interest takes depreciation and amortization. Or in other words we add depreciation, amortization and other non-cash expenses to EBIT. And we determine a gross amount of cash operating profit. If we have EBITDA of Rs 440,500 and interest expense of Rs 35,000 and we divide EBITDA with interest expense we get a ratio of Rs 12.59. This 12.59 times means that the firm has earned 12.59 times cash profit over its interest expense. Or putting other way in simple words we can say that firm has generated so much cash from its operations that it can pay off its interest expense over 12 times. Thank you very much.