what do you mean by debt equity ratio?
Answers were Sorted based on User's Feedback
Answer / pallavi bhatia
Debt Equity Ratio is calculated to know the proportion of
Debt and Equity being used to finance the assets of the
company.
If the ratio is greater than one, most of the items are
financed with debt, the company is in risk.
If the ratio is less than one, equity provides majority of
the financing.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / hamour
debt-equity ratio = total debt includes short term and long
term debt divided by total equity
| Is This Answer Correct ? | 7 Yes | 4 No |
Answer / sandeep
Debit Eqaity ratio is lond term debit divided by
shareholder fund.
As example if the long term debit is Rs 1,00,000 and
shareholder fund is 50,000 then debit equaity ratio is 2:1
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / tarun kumar gupta
Debt/Equity
Whereas Debt means Long-term debt
and
Equity means Net-Worth
| Is This Answer Correct ? | 3 Yes | 2 No |
The ratio measure the relative claims of the creditors, and
the owners against the firm assets. The relationship
between the long-term funds and the shareholders funds.
high debt-equity ratio implies the creditors margin of
saftey,firm point of view low debt-equity ratio greter the
margin of saftey.
high debt using the firm conservatism method more then
equity.
D/e ratio=long term funds/shareholders funds
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / jagdish chand
Debt-Equity Ratio = Outsider's Fund/Tangible Net Worth
or
All Debts(Long-term + Short Term) / Shareholder's Fund
| Is This Answer Correct ? | 3 Yes | 3 No |
Answer / ravi
debt equity ratio=Total long term debt divided by total
long term funds.
| Is This Answer Correct ? | 3 Yes | 8 No |
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