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What else can I help you with?
A decrease in the debt ratio will have no effect on?
business risk
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 decrease?
The debt can be repaid, or the GDP can grow faster than the debt.
What is the importance of financial cost ratio?
Earnings Before Tax / Earnings Before Interest and Tax It provides a comparative measure of the cost of debt.
Why debt to equity ratio decrease?
A decrease in the debt-to-equity ratio indicates that a company is either reducing its debt levels or increasing its equity base. This can occur through paying off loans, issuing new equity shares, or retaining more earnings instead of distributing them as dividends. A lower ratio typically suggests improved financial stability and lower financial risk, as the company relies less on borrowed funds to finance its operations and growth. Additionally, it may enhance investor confidence and attract further investment.
What factors might influence a firm's price-earnings ratio?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
How do you calculate senior debt to ebitda?
To calculate the senior debt to EBITDA ratio, you divide the total amount of senior debt by the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The formula is: Senior Debt to EBITDA = Senior Debt / EBITDA. This ratio helps assess a company's ability to service its senior debt relative to its earnings and is commonly used by lenders and investors to evaluate financial health. A lower ratio indicates better debt management and lower financial risk.
How do you decrease debt equity ratio?
Why the hell you want to decrease it.. Does it BITE? Chill man.. go count the chickens...
How can a company improve its debt to equity ratio?
A company can improve its debt to equity ratio by reducing its debt levels through strategies such as paying off existing debt, refinancing at lower interest rates, or increasing equity through issuing new shares or retaining earnings.
What is funded debt to ebitda?
Funded debt to EBITDA is a financial metric that compares a company's total funded debt (which includes long-term loans and bonds) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio helps assess a company's leverage and financial health, indicating how easily it can cover its debt obligations with its operating earnings. A higher ratio may suggest greater financial risk, while a lower ratio typically indicates a more manageable debt load relative to earnings. Investors and analysts often use this metric to evaluate a company's ability to sustain its debt levels.
Which ratio may indicate that the firm will not be able to meet interest obligations due on outstanding debt?
The interest coverage ratio is a key indicator that may suggest a firm will struggle to meet its interest obligations on outstanding debt. This ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A ratio less than 1 indicates that the firm is not generating enough earnings to cover its interest expenses, signaling potential difficulties in meeting debt obligations.
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
