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Q: An increase in the debt ratio will generally have no effect on what?
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Related questions

A decrease in the debt ratio will generally have no effect on what?

business risk


What are two ways the debt to GDP ratio can increase?

GDP Decreases and Debt Increases


What are two ways the debt-to-GDP ratio increase?

debt increases and GDP decreases.


A decrease in the debt ratio will have no effect on?

business risk


Can you change your debt to income ratio?

Your debt-to-income ratio is your total monthly debt obligations divided by your total monthly income. Increase your income or lower your debt payments to have a more favorable debt-to-income ratio. How do the credit companies know your income?


Is debt to equity ration generally equal or less than the debt to asset ratio?

less


What is the debt to tangible net worth ratio?

There is not an exact formula for the debt to tangible net worth ratio. However, generally speaking, it is an exact ratio of how much debt a company or person is in, compared to how much they are worth (net worth).


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

how to control debt equity ratio


What are the possible ways to increase debt-equity ratio?

The debt-to-equity ratio is a very simply calculation. Just divide a company's outstanding debt at a given date (usually quarter-end or year-end) by the company's equity on that same date. So, to increase this ratio, you would need to either increase the debt balance (i.e. borrow more) or decrease the equity balance (i.e. pay a dividend). Keep in mind, while increasing the debt-to-equity ratio will increase the ROE (return on equity) for a company, it also increases risk. Additionally, most banks include covenants in their loans that limit the debt-to-equity ratio for their customers (thereby making certain that the company has an equity "cushion" should an economic downturn occur).


Will cosigning a loan effect your ability to get a loan?

Yes, it will affect your debt to income ratio.


Does share capital effect borrowing power?

Yes if company has to maintain certain debt equity ratio then it can affect the borrowing power as more share capital will be adjusted to correspondant debt ratio.


What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?

Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%