Debt-equity ratio for 2008 = (1,170 + 500) (3,500 + 1,200) = .355 = 35.5%Difficulty level: MediumTopic: FINANCIAL LEVERAGE RATIOSType: PROBLEMS 相关知识点: 试题来源: 解析 C. 35.5% 根据题目中提供的计算公式: **债务股本比率 = (总负债 + 500)÷(所有者权益 3,500 + 1,200)...
What is the equation for the debt ratio? How to calculate debt to equity ratio How do you find the total debt to total assets ratio in accounting? How do you calculate the percent of debt given the debt ratio? What is debt equity ratio?
Example Companies with a higher debt to equity ratio are more risky than companies with a lower ratio. Unlike equity, debt must be repaid to the lender. Until the debts are repaid, interest payments must also be made to the lender. As you can see, debt is a far more expensive form of...
The debt ratio is also known as thedebt to asset ratioor thetotaldebt to total assets ratio. Hence, the formula for the debt ratio is: total liabilities divided by total assets. The debt ratio indicates the percentage of the total asset amounts (as reported on thebalance sheet) that is ...
Expressed as a formula, the debt to equity ratio is: (Liabilities/Stockholders’ Equity):1. Generally, the higher the ratio of debt to equity, the greater is the risk for the corporation’screditorsand prospective creditors. Example of Debt to Equity Ratio ...
Debt ratio - What is the debt ratio? The debt ratio is a financial ratio used in accounting to determine what portion of a business's assets are financed through debt. Track the value of your assets and depreciation with Debitoor accounting & invoicing software. Try it for 7 days free. A...
Debt-Ratio: The debt ratio is the ratio of total debt relative to the total assets and it indicates the percentage of fixed assets that are financed by borrowing debt. A firm will be prone to the financial risk of bankruptcy if it depends excessive...
If you have more debt than equity, you may not qualify for loans. If you have more equity than debt, your business may be more appealing to investors or lenders. What is the equity formula? Before you can use the debt-to-equity ratio formula, you must calculate your business’s equity...
As noted above, a company's debt ratio is a measure of theextent of its financial leverage. This ratio varies widely across industries. Capital-intensive businesses, such as utilities and pipelines tend to have much higher debt ratios than other companies in, for instance, thetechnology sector....
The asset turnover ratio uses the value of a company's assets in the denominator of the formula. The average value of the assets for the year is determined using the value of the company's assets on the balance sheet as of the start of the year and at the end of the year. The sum...