Based on following data related to Ambe limited, Jaipur, Answer question.

Identify the ratio that determine the ability of the business to service its debts in the long run.

Solvency ratios

The correct answer is Option 1 - Solvency ratios.

Solvency ratios focus on assessing a business's capability to fulfill its long-term debt obligations rather than short-term ones. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run.
Examples of solvency ratios include the debt equity ratio, total assets to debt ratio, proprietary ratio, and interest coverage ratio.