This indicator measures in percentage terms the company's income capacity to repay its financing through operating income generation (Ebit). The value is the ratio of operating income (Ebit) divided to total financial debt minus shareholders’ financing. It is also called loan to value. 

It is used by creditors of financial sources to monitoring the company's ability to satisfy long term debt financing as it becomes due so that can be a solvency warning cover ratio as the solvency depends on the earnings power of the company and in the long run any company cannot satisfy its debts unless it earns a profitable income generated by it business activity.

LOAN TO VALUE FORMULA: EBIT / (FINANCIAL DEBTS - SHAREHOLDING FINANCING)

UNIGIRO is a regtech facilitator. Its dynamic and extensive Key Performance Indicators (KPI) boost real-time monitoring of financial sustainability upgrading risk management regtech tools and corporate social governance.

MONITORING ENTERPRISE CREDIT RISK: the first Smart XBRL Data Analytics Engine Toolkit for Financial Risk Analysis that facilitate Creditors and Investors in monitoring company's creditworthiness and financial sustainability

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