No it is not because it shows the company's use debt to finance their assets and too much debts give risks to the company's financial health and position.
Loan companies typically look at your debt to total asset ratio when making lending decisions. If your debt is more than 50 percent of your total assets, they may not give you a large loan.
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?
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
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.
What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418
.5
debt to asset ration
less
When people are young and have just purchased a house a personal debt asset ratio of 80% or more is common. For middle-aged people and older a ratio of 50% or less is desirable.
debt to asset ratio income to outgo ratio
Debt to Equity ratio =Total liabilities / equity Debt to equity ratio = 105000 / 31000 = 3.387
You can find a debt calculator here www.realtor.com. You need debt to asset ratio to see if you can afford a loan.