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What is a burden ratio?

Updated: 9/16/2023
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(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets

A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity

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How to calculate the burden ratio of bank?

(Non Interest Op Expenditure - Non Interest Income)/ Average Assets


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

how to control debt equity ratio


What is debt ratio?

Debt RatioFor a company, the debt ratio indicates the relationship between capital supplied by outsiders and capital supplied by shareholders. Often the debt ratio is computed as total debt (both current and long-term) divided by total assets. Thus if a company has $50,000 in debt and assets of $100,000, its debt ratio is 50%. The debt ratio is also calculated as total debt/shareholders' equity, long-term debt/shareholders' equity, and in other ways. However computed, the debt ratio provides insight into the firm's capital structure and will vary across industries. A low debt ratio isn't necessarily best: If a company can earn a greater return on debt than 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 debt payments divided by monthly gross income. The debt ratio is monitored by credit card companies and determines the consumer's ability to obtain additional creditDebt Ratios measure the company's ability to repay its long-term debt commitments. They are used to calculate the company's financial leverage. Leverage refers to the amount of money borrowed in order to maintain the stable/steady operation of the organization.The Ratios that fall under this category are:1. Debt Ratio2. Debt to Equity Ratio3. Interest Coverage Ratio4. Debt Service Coverage RatioDebt Ratio:Debt Ratio is a ratio that indicates the percentage of a company's assets that are provided through debt. Companies try to maintain this ratio to be as low as possible because a higher debt ratio means that there is a greater risk associated with its operation.Formula:Debt Ratio = Total Liability / Total Assets


What are the most five important ratios for banks?

current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio


Another name for the acid test ratio is?

Other names are the quick ratio ot the liquid ratio

Related questions

What is burden ratio?

(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity


What is the formula of burden coverage?

Burden Coverage Ratio = EBIT/Interest Expense+[Principal Payment*(1-Tax Rate)


How do you calculate DBR?

The way to calculate DBR (Debt Burden Ratio) is to take all of a persons debt burden and add it together. Next, divide that debt burden by the after-tax income. This is the DBR.


How to calculate the burden ratio of bank?

(Non Interest Op Expenditure - Non Interest Income)/ Average Assets


What are the reasons for low sex-ratio?

female child is considered burden on parents and family. hence most of the medium and below economic group families adopted avoidance.


What is times burden covered ratio?

The times interest earned ratio is a financial metric that indicates a company's ability to meet its interest obligations with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. A higher ratio indicates a company is better able to cover its interest payments.


What is a sentence using the word burden?

The weak economy is a burden to all Ohioans and a burden to our state government.Oxen and donkeys are beasts of burden.


What actors and actresses appeared in The Burden Carriers - 2007?

The cast of The Burden Carriers - 2007 includes: Todd Anderson as Burden Carrier John Flax as Burden Carrier Rod Harrison as Burden Carrier Mona Malec as Burden Carrier Vanessa Rios Valles as Burden Carrier


When was Burden Me created?

Burden Me was created in 2001.


What is the birth name of Billy Burden?

Billy Burden's birth name is William George Burden.


What is the birth name of Luther Burden?

Luther Burden's birth name is Luther D. Burden.


Donkey could become a what of burden?

beast of burden