Creditworthy
(adjective)
1. Deemed likely to repay debts.2. Having an acceptable credit rating.
Examples of Creditworthy in the following topics:
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Analyzing Long-Term Liabilities
- Analyzing long-term liabilities often includes an assessment of how creditworthy a borrower is, i.e. their ability and willingness to pay their debt.
- As part of their analysis Standard & Poor's will issue a credit rating that is designed to give lenders and investors an idea of the creditworthiness of the borrower.
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Times Interest Earned Ratio
- The higher this ratio, or the more EBIT a company can produce relative to its required interest payments, the stronger the company's creditworthiness and overall financial health are considered to be.
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Outputs of Accounting
- Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.
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Uses of Financial Reports
- Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.
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Types of Bonds
- This is an unsecured bond backed only by the general creditworthiness of the issuer, not by a lien on any specific property.