There are many ratios, which are used to see how the business is healthy in terms of many ways..............
1.Debt Equity ratio shows how much finance is required to the company & 2:1 is the best
2.Debt service Coverage ratio: It shows how the business repay bank loan and interest, and or operating expenses of the business. DSCR: 1.7 means, the company atleast repay bank loan. And 2.1 means the business is very healthy by all means.
I think this will be sufficient to know whether the business is healthy or not.
27th May 2012 From India , Mumbai
C A K C AGARWAL, ALLAHABAD
10th June 2014 From India, Allahabad
29th April 2015 From India, Trivandrum