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There is not an exact formula for the debt to tangible net worth ratio. However, generally speaking, it is an exact ratio of how much debt a company or person is in, compared to how much they are worth (net worth).
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Why is the debt to tangible net worth usually higher than the debt-equity ratio?
Because for the calculation of the debt to to tangible assets ratio ONLY the tangible assets (machinery, buildings and land, and current assets, such as inventory, etc...) are taken into consideration for the calculation VS the debt ratio where ALL of the assets (tangible and intangible such as patents, trademarks, copyrights, goodwill and brand recognition) are taken into consideration for the calculation.
In the context of ratio analysis what is TOL?
TOL stands for Total Outside Liabilities. It is used in the calculation of the ratio Total Outside Liabilities / Total Tangible Net Worth.
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
What Is A Debt Coverage Ratio?
It’s a ratio among Net Operating Income and the debt service. It's used to determine profitability after paying debt service.
The Rangoon Timber Company has the following relationships SalesTotal Assets equals 2.23 ROA equals 9.69 percent ROE equals 16.4 percent What is Rangoon's Profit Margin and Debt Ratio?
What is given is: sales / total assets = 2.23 ROA = 9.69% ROE = 16.4% Find: profit margin Debt ratio ROA = Net income / total assets = (Net income/ net sales) x (net sales /total assets)) Net income / net sales = ROA / (net sales / total assets) = 0.969 / 2.23 = 0.0435 Net profit margin = net income / net sales = 0.0435 = 4.35 % ROE = net income / total equity = (net income/net sales) x (net sales/ total assets) X (total assets / total equity) Total assets / total equity = ROE / ((net income/net sales) x (net sales/ total assets)) = 0.164 / (0.0435 x 2.23) = 0.164 / 0.097 = 1.69 Equity multiplier = total assets / total equity Equity multiplier = ROE / ROA = 0.164 / 0.0969 = 1.69 Equity multiplier = 1 + debt-to-equity ratio Debto-to-equity ratio = equity multiplier - 1 = 1.69 - 1 = 0.69 Total debt ratio = debt-to-equity ratio / (1+debt-to-equity ratio) = 0.69 / (1+ 0.69) = 0.41
Why is the debt to tangible net worth usually higher than the debt-equity ratio?
Because for the calculation of the debt to to tangible assets ratio ONLY the tangible assets (machinery, buildings and land, and current assets, such as inventory, etc...) are taken into consideration for the calculation VS the debt ratio where ALL of the assets (tangible and intangible such as patents, trademarks, copyrights, goodwill and brand recognition) are taken into consideration for the calculation.
How do you calculate tangible net worth?
Tangible net worth is calculated as follows: Book net worth + Subordinated Debt - Assets/Receivables due from affiliates - Intangible assets = Tangible net worth Lenders use it to estimate how much real value is in a businesses book net worth.
In the context of ratio analysis what is TOL?
TOL stands for Total Outside Liabilities. It is used in the calculation of the ratio Total Outside Liabilities / Total Tangible Net Worth.
What is net sales divided by tangible assets ratio?
fixed assets turnover ratio
What does DTNW meaning in accounting?
In accounting, DTNW typically stands for "Deducted Through Non Withholding". This refers to a situation where a deduction or payment has been made without being withheld from the source, usually for taxes or other mandatory withholdings.
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
What Is A Debt Coverage Ratio?
It’s a ratio among Net Operating Income and the debt service. It's used to determine profitability after paying debt service.
What is Net income divided by total assets?
debt to assets ratio
How you find net pay?
its what you make then subtract any debt you own then you have your net worth.
What is the net worth of Pete Rose?
debt. 25 million
Define funded debt to net working capital ratio?
wohi jo tera baap
Rich boy net worth?
0. He has a whole lot of debt.
