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What is considered a good debt to asset ratio for a company?

A good debt to asset ratio for a company is typically around 0.5 to 0.6, meaning that the company has more assets than debt. This ratio shows how much of the company's assets are financed by debt, with lower ratios indicating less financial risk.


What is considered a good debt to assets ratio for a company?

A good debt to assets ratio for a company is typically around 0.5 to 0.6, which means that the company has more assets than debt. This ratio shows how much of a company's assets are financed by debt, with lower ratios indicating less financial risk.


How can one calculate the debt ratio from a balance sheet?

To calculate the debt ratio from a balance sheet, you divide the total liabilities by the total assets and multiply by 100 to get a percentage. This ratio shows the proportion of a company's assets that are financed by debt.


What is a solvency ratio used for?

A solvency ratio measures a insurers risk of claims it cannot absorb. Basically it is its capital relative to premiums written. One could say it shows that the insurer could cover all its policies.


What is volatility in forex?

Volatility is the range in which the price of a financial instrument fluctuates and is one of the most significant indicators to highlight the attractiveness of a trading instrument. Volatility shows the extent of risk involved in using an instrument since the higher the indicator, the bigger the range in which the rate changes over a specified amount of time.

Related Questions

What shows which elements are in compound and their ratios?

A formula shows constituent elements and their ratios. In the formula Al2O3, you can see aluminum and oxygen bonded in a 2-3 ratio.


What is An equation that shows that ratios are equivalent?

That's a " proportion ".


What is an equation that shows the two ratios are equivlant?

AA


Is an equation that shows two equivalent ratios?

A proportion


What is an equation that shows two equivalent ratios?

It is called a proportion.


An equation that shows that two ratios or rates are equivalent?

Proportion


What shows elements are in a compound and their ratios?

This is the chemical formula.


What shows how installment loans are calculated?

amount financed= cash price- down payment


What is an equation that shows that two ratios or rates are equivalent?

scale factor


What equation shows how installments loan are calculated?

amount financed = cash price - down payment


What is considered a good debt to asset ratio for a company?

A good debt to asset ratio for a company is typically around 0.5 to 0.6, meaning that the company has more assets than debt. This ratio shows how much of the company's assets are financed by debt, with lower ratios indicating less financial risk.


What is considered a good debt to assets ratio for a company?

A good debt to assets ratio for a company is typically around 0.5 to 0.6, which means that the company has more assets than debt. This ratio shows how much of a company's assets are financed by debt, with lower ratios indicating less financial risk.