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Total liabilities divided by total assets.
This ratio is used to identify the financial leverage of the company i.e. to identify the degree to which the firm's activities are funded by the owners money versus the money borrowed from creditors.
The higher a company's degree of leverage, the more the company is considered risky.
Formula:
DER = Net Debt / Equity
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how to control debt equity ratio
What are the most five important ratios for banks?
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
Another name for the acid test ratio is?
Other names are the quick ratio ot the liquid ratio
Classification of Ratio Analysis?
1. Ratios for management a. Operating ratio b. Debtors turnover ration c. Stock turnover ratio d. Solvency ratio e. Return on capital 2. Ratios for creditors a. Current ratio b. Solvency ratio c. Fixed asset ratio d. Creditors turnover ratio 3. Ratios for share holders a. Yield ratio b. Proprietary ratio c. Dividend rate d. Capital gearing e. Return on capital fund.
What are the advantage and disadvantages business ratio?
ratio analysis
What type of ratio is 12 is?
12 is a single number. In so far as it can represent a ratio, it is a ratio of 12 to 1: a unit ratio.12 is a single number. In so far as it can represent a ratio, it is a ratio of 12 to 1: a unit ratio.12 is a single number. In so far as it can represent a ratio, it is a ratio of 12 to 1: a unit ratio.12 is a single number. In so far as it can represent a ratio, it is a ratio of 12 to 1: a unit ratio.
Is there a platinum ratio if there is a golden ratio?
No. There is no platinum ratio.
What is the mass ratio of pennies to nickels?
The ratio is 1:2The ratio is 1:2The ratio is 1:2The ratio is 1:2
What is the ratio of Two triangles that are similar and have a ratio of similarity of 310 what is the ratio of their areas?
If the ratio of similarity is 310, then the ratio of their area is 96100.
What is eqivalent ratio?
an eqivalent ratio is an ratio that is equal or you can simplfiy it
What is the definition of unit ratio?
Unit Ratio- a ratio that has a denominator of 1
What is the ideal ratio of all accounting ratio?
There is no single ideal ratio.
How do you calculate the transformer turns ratio?
For an ideal transformer, the voltage ratio is the same as its turns ratio.
What is the ratio of the circumferences of two wheels if the ratio of their radii is 2 to 3?
The ratio of all lengths is the same. The ratio of the circumferences = ratio of the radii = 2:3
What is the ratio for the volumes of two similar spheres given that the ratio of their radii is 3 4?
ratio of volumes is the cube of the ratio of lengths radii (lengths) in ratio 3 : 4 → volume in ratio 3³ : 4³ = 27 : 64
A comparison of two amounts using division?
rater
The product of the numerator of one ratio and the denominator of ratio?
this is found by multipling the denominator of one ratio by the numerator of the other ratio
