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Sum of all liabilities divided by sum of equity.

E.g.:

A company owes £150,000 as a bank loan, and has a share capital of £1,000,000.

The debt/equity ratio is 15 per cent.

This ratio is also known as "gearing" or "leverage".

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15y ago

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Does DTI include property tax when calculating a borrower's debt-to-income ratio?

No, DTI typically does not include property tax when calculating a borrower's debt-to-income ratio.


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

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Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?

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


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Debt ratio to determine the strength of a companies financial strength is calculated by taking all the companies debts and dividing it by total assets.


On a consolidated statement of financial position is total liabilities and shareholders' investment the same as just total liabilities which figure should i use when calculating the debt ratio?

yes


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To determine your debt to asset ratio, divide your total debt by your total assets. This ratio helps you understand how much of your assets are financed by debt.


Is there a place I can find a debt to income ratio calculator online?

There is a formula to find debt to income ratio online it is total recurring debt divided by the gross income. Refer the sites www.bankrate.com , www.money -zine.com ,www.consumercredit.com


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Besides your credit score, another good indicator of financial health is the debt to income ratio. The debt to income ratio takes your total amount of debt and divides it by your total income. Ideally, this ratio should be less than 36%. A ratio higher than 36% may indicate that you are over leveraged and are a potential credit risk. If you need help with the math, there are a number of useful online calculators. If you want to look for your own, make sure it helps you identify debts and incomes appropriately.


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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?


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The debt ratio average for a company is a measure of how much of its assets are financed by debt. It is calculated by dividing total debt by total assets. A higher debt ratio indicates that a company relies more on debt to finance its operations, while a lower ratio suggests a more conservative approach.