What is ideal debt-equity ratio
Answers were Sorted based on User's Feedback
Answer / shalini.mann
mr. Suhasini Modagi
ideal debt equity ratio is 2:1 nt 1:2.
Is This Answer Correct ? | 36 Yes | 10 No |
Answer / kkt
debt/equity ratio below 0.50 is ideal; however, many
stable companies have a ratio of 1.0 or higher.
Is This Answer Correct ? | 32 Yes | 10 No |
Answer / amir
Debt-equity ratio is the ratio of debt and equity in the
company lower ratio will be overcapitalization and higher
ratio shows undercapitalization
Is This Answer Correct ? | 21 Yes | 3 No |
Answer / rajesh
its all depand upon the ompany capital structure
Is This Answer Correct ? | 14 Yes | 2 No |
Answer / suhasini modagi
I m not sure .... i have heard from many professionals that
Debt: Equity ratio will be 1:2.
Plz rectify , if it is wrong
Is This Answer Correct ? | 17 Yes | 15 No |
Answer / alok
Ideal Debt-Eqity Ratio for a company depends on industry
type from which it belongs. If it is from service industry
low D-E is ideal it may be 0 To.05 Otherwise it is .05to1.5
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / kasthuri
The ideal debt-equity ratio is one.
Also 2:1 is good.
There is no Thumb rule or ideal ratio for this.
It depends on the company's financial policies and
programmes.
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / rajni
I feel its highly dependent on the sector. A straight 2:1 or
3:1 is nt an ideal D by E ratio for all the companies.
Is This Answer Correct ? | 4 Yes | 3 No |
Answer / krishna
debt equity ratio formula is total debt /total equity means how much value of the debt in the equity. it is capital structure ratio total capital= debt+ equity.
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / suhasini modagi
thanks for rectifing my answer shalini.
Is This Answer Correct ? | 4 Yes | 5 No |
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