Debt ratio: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: https://www.accountingcoach.com/blog/debt-ratio, https://investinganswers.com/financial-dictionary/ratio-analysis/debt-ratio-357) |
(No difference)
|
Revision as of 19:49, 3 February 2019
1. Financial ratio analysis - long term solvency ratios.
The debt ratio is designed to indicate the ability of a business to meet its financial obligations in the medium and longer term.
It is sometimes calculated as Total liabilities divided by Total assets.
2.
An alternative calculation of the debt ratio is Total debt divided by Total assets.
Here as elsewhere, consistency of definition and application is essential.
