Financial ratios

Debt ratio

Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. It is the ratio of total debt and total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill'). Debt ratio = Total Debts/Total Assets or alternatively: Debt ratio = Total Liabilities/Total Assets For example, a company with $2 million in total assets and $500,000 in total liabilities would have a debt ratio of 25%. Total liabilities divided by total assets or the debt/asset ratio shows the proportion of a company's assets which are financed through debt. If the ratio is less than 0.5, most of the company's assets are financed through equity. If the ratio is greater than 0.5, most of the company's assets are financed through debt. Companies with high debt/asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms. (Wikipedia).

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Long Term Debt to Equity Ratio, ROE, & Shareholder's Equity

This finance video tutorial explains how to calculate the long term debt to equity ratio (LT Debt/Eq) and the total debt to equity ratio (Debt/Eq) using a company's shareholder equity and the ROE or return on equity. My Website: https://www.video-tutor.net Patreon Donations: https://www

From playlist Stocks and Bonds

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Ratios

This video defines a ratio and provides several examples on how to write a ratio and shows how to simplify a ratio. http://mathispower4u.wordpress.com/

From playlist Ratios and Rates

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From playlist Algebra

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Ratios are used to compare different quantities. In this introduction to ratios we will look at what ratios are, how we deal with ratios of different measurement units and that ratios can be simplified. To donate to the tecmath channel:https://paypal.me/tecmath To support tecmath on Pa

From playlist Ratios

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Rates

This video is about Rates

From playlist Ratios and Rates

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Dividends - Payout Ratio vs Retention Ratio

This stocks and bonds video tutorial explains how to calculate the dividend payout ratio and the retention ratio. The payout ratio is equal to the total dividends paid divided by the net income. The retention ratio is equal to the earnings retained divided by the net income. My Website:

From playlist Stocks and Bonds

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From playlist Banking and Money

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From playlist Concerning Finance

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Ratios are said to be in proportion if they equal. This video looks at how to simply see if two ratios are in proportion - that is whether they are equivalent. We then look at how to easily find out how much of a quantity is required to keep something in proportion. To support free math

From playlist Ratios

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Excel Finance Class 17: Leverage & Solvency Ratios: Debt To Equity, Equity Multiplier, more...

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From playlist Excel Finance Free Course at YouTube. Cash Flow Analysis and Model Building (110 Videos).

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Build With Magnimetrics: Debt Covenants Tutorial [Free FP&A Software]

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From playlist IIT Bombay: Managerial Accounting | CosmoLearning.org Accounting

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Excel Finance Class 16: Liquidity, Current Ratio and How Current Ratio Can Be Manipulated

Download Excel File: https://people.highline.edu/mgirvin/YouTubeExcelIsFun/Busn233Ch03.xls Download pdf notes: https://people.highline.edu/mgirvin/YouTubeExcelIsFun/BUSN233cH03-16PAGES.pdf Download 2nd Excel File: https://people.highline.edu/mgirvin/YouTubeExcelIsFun/Busn233Ch03DaysInCashC

From playlist Excel Finance Free Course at YouTube. Cash Flow Analysis and Model Building (110 Videos).

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Related pages

Equity ratio | Financial ratio