what is debt equity ratio
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Answer / ravi.harjai2009@gmail.com
in simple words debt equity ratio refers to comparing the
debt* with owner's equity**
debt
ratio of debt to equity -- -------
equity
*debt -- including the debantures,creditors,long term lones.
**equty -- including the equity shares,prefrences shares &
reserve and surplus..
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / satyaki_raju@yahoo.com
It is a measure of acompanys leverage calculated by
dividing its liabilities by share holders equity
=Total Liabilities/Share holders equity
| Is This Answer Correct ? | 12 Yes | 6 No |
Answer / shailaja
Debt equity ratio= loan funds/shareholders fund
| Is This Answer Correct ? | 6 Yes | 1 No |
It is a measure of acompanys leverage calculated by
dividing its liabilities by share holders equity. the
formulae for caluculating debt equity ratio is
debt/equity debt means debentures equity means equity share
holders. the ideal ratio of debt equity ratio is 0.5 : 1
this indicates for every 50 paise of liability there must
be 1 rupee of asset
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / md. rofi
A measure of a company's financial leverage. Debt/equity
ratio is equal to long-term debt divided by common
shareholders' equity. Typically the data from the prior
fiscal year is used in the calculation. Investing in a
company with a higher debt/equity ratio may be riskier,
especially in times of rising interest rates, due to the
additional interest that has to be paid out for the debt.
For example, if a company has long-term debt of $3,000 and
shareholder's equity of $12,000, then the debt/equity ratio
would be 3000 divided by 12000 = 0.25. It is important to
realize that if the ratio is greater than 1, the majority of
assets are financed through debt. If it is smaller than 1,
assets are primarily financed through equity.
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Answer / chandu
debt equity ratio means the relationship between long term
debt and equity share holders funds.
debt equity ration formula = long-term deby/equity share
holders funds.
| Is This Answer Correct ? | 3 Yes | 3 No |
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