What is ideal debt-equity ratio
- 12 Answers
- 24848 Views
- BPO, JP Group, Scope International, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / shalini.mann
mr. Suhasini Modagi
ideal debt equity ratio is 2:1 nt 1:2.
| Is This Answer Correct ? | 36 Yes | 10 No |
Answer / kkt
debt/equity ratio below 0.50 is ideal; however, many
stable companies have a ratio of 1.0 or higher.
| Is This Answer Correct ? | 32 Yes | 10 No |
Answer / amir
Debt-equity ratio is the ratio of debt and equity in the
company lower ratio will be overcapitalization and higher
ratio shows undercapitalization
| Is This Answer Correct ? | 21 Yes | 3 No |
Answer / rajesh
its all depand upon the ompany capital structure
| Is This Answer Correct ? | 14 Yes | 2 No |
Answer / suhasini modagi
I m not sure .... i have heard from many professionals that
Debt: Equity ratio will be 1:2.
Plz rectify , if it is wrong
| Is This Answer Correct ? | 17 Yes | 15 No |
Answer / alok
Ideal Debt-Eqity Ratio for a company depends on industry
type from which it belongs. If it is from service industry
low D-E is ideal it may be 0 To.05 Otherwise it is .05to1.5
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / kasthuri
The ideal debt-equity ratio is one.
Also 2:1 is good.
There is no Thumb rule or ideal ratio for this.
It depends on the company's financial policies and
programmes.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / rajni
I feel its highly dependent on the sector. A straight 2:1 or
3:1 is nt an ideal D by E ratio for all the companies.
| Is This Answer Correct ? | 4 Yes | 3 No |
Answer / krishna
debt equity ratio formula is total debt /total equity means how much value of the debt in the equity. it is capital structure ratio total capital= debt+ equity.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / suhasini modagi
thanks for rectifing my answer shalini.
| Is This Answer Correct ? | 4 Yes | 5 No |
what is the difference between liquid asset and fixed asset
In p&l account where does miscellaneous expenses comes
what is accounting entries to be made in TAlly for stock (rice, cocunut, oils etc.,) used for food (like idly, dosa etc.,) pls guide us
What's the method to prepare the MIS Report? or What's the Step of prepare of MIS Report?
1.what is debenchers? 2.what is devident? 3.reverce merger?
What is meant by undercast and overcast in accountancy? Explain with some transactions and their corresponding journal entries.
why a fixed cost is said to be fixed?
Define EBIT & EBITDA?
7 Answers Core Logic, Genpact,
Tell us your experience in cost accounting?
What do you mean by SPOT Rate in case of Foreign Branch...???
give narration of cash----a/c---Dr To cash
Expand C C A
Audit 
