Interested to Buy Any Domain ? << Click Here >> for more details...
What is the formula of Debt Equity Ratio? Also define its
importance in a firm.
- 6 Answers
- 14675 Views
- ICAI, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / navesh joshi
Debt Equity Ratio = Debt/Equity
Debt= Long term borrowed funds
equity= share capital+ preference share capital +
reserves&surplus - fictitious asset
the importance of this ratio is to judge the long solvency
position of a company and capital structure.
| Is This Answer Correct ? | 23 Yes | 0 No |
Answer / rahul sharma
Debt Equity Ratio = Debt/Equity
Debt= Long term borrowed funds
Equity= share capital+ preference share capital +
reserves&surplus - fictitious asset- P&L a/c dr balance.
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / harish
Total Debt/Total Equity
It indicates the financial advantage of the concern(popularly
called leverage).
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / libina kutty
DEBT EQUITY RATIO = DEBT / EQUITY
IT TELLS D TOTAL DEBT OF AN ENTITY TO ITS EQUITY . IT SHOULD
BE IN THE RATIO OF 2:1. WHICH MEANS FR EVRY 2 DEBT 1 EQUITY
SHOULD BE THEIR.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / saurabh
debt/equity ratio:
debt :(long term debt + short term debt)
equity : (common share + pref share+ reserves and surplus)
it is used to assess the
1)riskiness
2)used by banks to check the existing composition of debt -
should be on the lower side to leave scope for more debt
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / suresh
Debt Equity Radio : Debt/Equity
Debt: Long term Loans, Overdraft , Borrowings
Equity : share Capital and preference share Capital +
Reserve and Surplus - if Any loss
| Is This Answer Correct ? | 0 Yes | 3 No |
Why closing stock appears both in trading and Balance sheet? Why does it doesnot appear in trail balance.
WHAT IS THE DIFFERENCE BETWEEN COST CONTRL & COST REDUCTION
business sepsarate entity concepts
EXPAND_______________TSI
WHAT IS RATE OF INCOME TAX FOR THE ASS.YEAR 2009-2010?
EXPAND___________NGO
Which one is best to company either debt or equity?
why specifically inited states ?
Briefly explain about Stok valuation.
Expand---------STRP
what is entry for depreciation?
44 Answers Genpact, IBM, Maersk, OPI Global, Wipro,
What is stock transfer? for ex: if i purchase a product in chennai and i tranfer it to our branch which is in bangalore. shall the blr office can bill the product to their customer in blr.(purchse frm chennai and bill in blr office is possible?
Audit 
