Debt Ratio
The debt ration is the ratio of a company’s total debts to its total assets.
Debt ratio = Total debts / Total assets
- Assets consist of fixed assets at their balance sheet value, plus current assets.
- Debt consists of all creditors, whether amounts falling due within one year or after more than one year.
You can ignore long-term provisions and liabilities, such as deferred taxation.
0 comments:
Post a Comment