lõpphinnangud

Lõpphinnangud are a type of financial indicator used in finance and economics to evaluate the adequacy or sufficiency of an enterprise's financial resources to meet its obligations and pay its debts. This concept is often translated from Estonian to English as "final assessments" or "final appraisals".

Lõpphinnangud refers to the process of determining the maximum amount that a company can afford to pay in the event of a particular financial distress or insolvency scenario. In other words, it represents a critical threshold beyond which the company's financial resources would likely become exhausted. This assessment is typically based on the analysis of a company's liquidity, cash flow, and other debt servicing capabilities.

Lõpphinnangud is often expressed as a multiple of a company's earnings before interest and taxes (EBIT), which essentially indicates the ratio of the company's debt servicing capacity to its earnings. This financial ratio helps stakeholders, including investors and creditors, to evaluate a company's ability to service debt in the event of financial stress or default.

The concept of lõpphinnangud is commonly applied in the debt markets, particularly in the assessment of commercial paper and other short-term debt obligations. It serves as a means of evaluating the creditworthiness of counterparties and assessing the potential risks of lending or investment. By evaluating the lõpphinnangud of a company or business, stakeholders can better understand its financial resilience and the likelihood of potential insolvency.