50%/6%= 8.3%
Return on capital employed means an accounting ratio used in finance, valuation, and accounting. Not to be confused with return on equity, it is similar to return on assets yet takes into account sources of financing.
Debt to Equity ratio =Total liabilities / equity Debt to equity ratio = 105000 / 31000 = 3.387
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
It depends. With ratio analysis it is important to consistently apply the ratio over time and/or across companies. The unadjusted ROA ratio is computed as net income divided by assets, while the adjusted ROA ratio is NOPAT divided by assets. (NOPAT = net income plus net interest expense after tax). Many people would say the NOPAT based ROA is a better measurement of the profitability of the assets, since the cost of debt is excluded. In other words, the way the assets are financed does not affect the profitability of the assets. Most likely, when analyzing a firm's profitability over time, both ratios will show the same trend. In this sense it probably doesn't matter much which ratio is used. A similar reasoning can be applied to return on equity (ROE). Preferred shares legally qualify as equity, but economically often behave like debt. An adjusted ROE (with subtracting preferred dividends from income and dividing by the number of common shares outstanding) will more closely reflect the 'true' profitability of common equity. If used in practice, both regular ROE and adjusted ROE will probably give similar insights into the firms profitability. (From a statistical point of view the two measures of ROE are highly correlated.)
the return on equity divided by the return on assets
When the debt ratio is zero
The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.
this ratio shows how much income is generated by equity of the company. it is a great contributor towards profitability of a company. return on equity is calculated as follows:Return on equity = (Net income / Total equity) x 100
.5
Equity Multiplier = 2.4 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.4 = 0.42 MEMORIZE this formula: Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.42 = 0.58 or 58%
how to control debt equity ratio
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
50%/6%= 8.3%
Equity multiplier = 24 Equity ratio = 1/3.0 = 0.33 Debt ratio + Equity ratio = 1 ***THIS EQUATION IS THE KEY TO THE ANSWER*** By manipulating this formula you can find Debt ratio = 1 - Equity ration 1 - 0.33 = 0.67 or 67% Debt ratio = 67%
Return on equity, Net Profitability ratio, Acid Test
Return on capital employed means an accounting ratio used in finance, valuation, and accounting. Not to be confused with return on equity, it is similar to return on assets yet takes into account sources of financing.