0
No, it does not. The debt ratio measures the ability to pay for both current and long term debts. This is calculated by dividing total liabilities over total assets. Owner's capital OS part of stockholders' equity.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Is tax recoverable deducted from current assets in calculation of quick ratio?
yes
Equity capital to total assets ratio?
Bank capital to assets is the ratio of bank capital and reserves to total assets. Capital and reserves include funds contributed by owners, retained earnings, general and special reserves, provisions, and valuation adjustments. Capital includes tier 1 capital (paid-up shares and common stock), which is a common feature in all countries' banking systems, and total regulatory capital, which includes several specified types of subordinated debt instruments that need not be repaid if the funds are required to maintain minimum capital levels (these comprise tier 2 and tier 3 capital). Total assets include all nonfinancial and financial assets.
Is 1.26 current ratio good?
It depends on the nature of business as well as the capital intensity of the business if business is capital intensive the high current ratio required otherwise it is not required to maintain high current ratio
How can one calculate the working capital ratio?
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
An increase in a company's working capital ratio generally indicates an financial position?
stable
How do you calculate CD ratio?
cd ratio calculation
How do you calculate brix-acid ratio?
What is the method of brix acid ratio calculation
Do we consider loans and advances for calculation of current ratio?
yes
What is meant by the interest coverage ratio?
The interest coverage ratio is the calculation that determines a company's ability to repay debt payments. It is this calculation that determines whether or not companies are able to obtain loans.
What is Compound Ratio?
Expression of Compound Ratio - x : y : z For example, a calculation of compound ration may be expressed as x:y:z = a:b:c Note that its calculation has to decompose their ratio expression above into the following, x:y = a:b AND y:z = b:c
What are the most five important ratios for banks?
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
How do you calculate net capital ratio?
Net Capital Ratio =Total assets / Total Liabilities
What happens if a stoichiometry ratio is incorrect?
the concerned calculation goes wrong...
What happens if a ratio is incorrect in stoichiometry?
the concerned calculation goes wrong...
How Capital Adequacy Ratio of a Bank is arrived?
The Capital Adequacy Ratio of a bank is arrived at by comparing the sum of its Tier 1 and Tier 2 capital to its risk. The equation for expressing the Capital adequacy ratio is: CAR=(Tier 1 Capital +Tier2 Capital)/Risk weighted assets.
What is the formula for capital turnover ratio?
Capital turnover = Sales/ Invested capital
What is the calculation of sodium and phosphate ratio for high pressure boiler?
3:1
