Debt for equity swap and Debt ratio: Difference between pages
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imported>Doug Williamson (Created page with "The exchange of an investor's debt instruments for equity. This is most commonly undertaken when the borrower is financially distressed. See also Debt Equity Equity swap Swap") |
imported>Doug Williamson (Layout.) |
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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. | |||
See also | 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. | |||
== See also == | |||
* [[Current ratio]] | |||
* [[Gearing]] | |||
* [[Interest cover]] | |||
* [[Long-term solvency ratio]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Revision as of 19:50, 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.
