# What is ideal debt to equity ratio?

# What is debt-to-equity ratio?

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 ar…e 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

# Debt equity ratio tells about what?

debt equity ration

# How do you decrease debt equity ratio?

Why the hell you want to decrease it.. Does it BITE? Chill man.. go count the chickens...

# What is high debt equity ratio?

your mother

# If debt ratio is point5 what is debt-equity ratio?

There is no such thing as "debt ratio." A ratio is a fraction,, it needs two numbers, one divided by the other. A debt/equity ratio of 0.5 is debt = $500, equity = $1000, or …any other set of numbers that equals 0.5 or 50%.

# Can debt equity ratio be zero?

Technically, yes. Practically, no. A company will always have non-current liabilities..
Appendix:.
Debt equity ratio = non-current liabilities / equity. .
>1:1 or >100% mea…ns investment is risky.

# How do you solve for debt to equity ratio with an equity multiplier of 2.47?

debt ratio+Equity ratio=1 debt ratio=1-1/2.47=0.6=60%

# What is formula of debt equity ratio?

debt-equity ratio=total debt/total equity

# Solve for debt equity ratio with debt ratio of 43?

For a company, the debt ratio indicates the relationship betweencapital supplied by outsiders and capital supplied by shareholders.Often the debt ratio is computed as total de…bt (both current andlong-term) divided by total assets. Thus if a company has $50,000in debt and assets of $100,000, its debt ratio is 50%. The debtratio is also calculated as total debt/shareholders' equity,long-term debt/shareholders' equity, and in other ways. Howevercomputed, the debt ratio provides insight into the firm's capitalstructure and will vary across industries. A low debt ratio isn'tnecessarily best: If a company can earn a greater return on debtthan its cost, the firm should borrow more and raise its debt ratio-- provided the debt burden won't be crushing when business slows.Turning to consumers, the debt ratio is often shorthand for the"debt to income" ratio, i.e., an individual's monthly minimum debtpayments divided by monthly gross income. The debt ratio ismonitored by credit card companies and determines the consumer'sability to obtain additional credit

# Total Debt to Equity Ratio formula?

Sum of all liabilities divided by sum of equity. E.g.: A company owes Ă‚ÂŁ150,000 as a bank loan, and has a share capital of Ă‚ÂŁ1,000,000. The debt/equity ratio is 15 …per cent. This ratio is also known as "gearing" or "leverage".

# If the debt equity ratio is 1.0?

it's mean that total assets and total liabilities are equal for example: total assets are 50,000 and total liabilities are 50,000 so the debt ratio is 1

# If the debt-equity ratio is 1.0 then the total debt ratio is?

The total debt ratio is .5; total debt would be .5 as well as total equity (both added together equal 1). Total debt ratio = .5 (total debt)/.5 (total equity)= 1.

Answered

In Debt and Bankruptcy

# What is the ideal ratio for total debt ratio?

Basically there is no absolute plug number. It differs from one firm to another. Say for instance: a starting fast growth High-tech firm normally will have higher ratio than …a mature profitable one. The same goes from industry to industry: transportation VS pharmaceuticals. Conclusion: each firms has its own unique dept ratio, but what matter is, how efficient the dept is managed.

Answered

In Debt and Bankruptcy

# How do you figure Debt-to-equity ratio percentage?

Total all you monthly debt payments (don't count bills that are not debt's such as utilities, gym memberships, etc) and divide that by your monthly income.

Answered

In Debt and Bankruptcy

# How can you control your debt ratio and debt to equity ratio?

how to control debt equity ratio

Answered

In Debt and Bankruptcy

# What does debt to equity ratio tell us?

It tells about the capital structure of the company-how much it is debt financed and how much owner's equity is there.

Answered

In Debt and Bankruptcy

# How debt equity ratio improved?

Since the debt/equity ratio is determined as a fraction, you either decrease debt or increase equity. Before 2008, home equity increased yearly, but middle class persons kept …borrowing against the equity rather than let it increase. Many mortgages are now underwater - the value of the house is less than the mortgage(s). So increasing equity is difficult. Debt can be improved by 1)discharging debt in bankruptcy, 2) paying down credit cards, 3)never going over credit limits, preferably staying under half of the credit limit and paying the balance due at the end of the period (not the minimum payment due, the full balance). If you have more than one card, you might want to try paying down one card completely. Picking which card to do that to can get complicated, so you might consult a US Trustee approved debt consultation agency.