What is the Formula of debt equity ratio?
Also Define its importance in accountancy.
Answers were Sorted based on User's Feedback
Debt equity ratio is classified under the head leverage or
capital structure ratio. That to long term ratios.
Importance of debt equity ratio : Where it shows the
relative claims of the creditors and shareholders of the
company. Creditors look into the financial strength of the
company in providing the long term debt. where
shareholder's having the right against the assets(profits)
of the company.
=Long term liabilities/Shareholders funds.
Shareholders funds = Equity+Preference+Reserves-Ficticious
assets
| Is This Answer Correct ? | 31 Yes | 3 No |
Answer / srikara.h.p
Debt equity ratio is a long term ratio, it shows the
proportion of debt over the equity. the formula for debt
equity ratio is
DER= debt/equity
here debt is longterm liabilities and equity is none other
than the share holders fund
| Is This Answer Correct ? | 14 Yes | 3 No |
Answer / ajinkya jagtap
Debt equity ratio is classified under the head leverage or
capital structure ratio. That to long term ratios.
Importance of debt equity ratio : Where it shows the
relative claims of the creditors and shareholders of the
company. Creditors look into the financial strength of the
company in providing the long term debt. where
shareholder's having the right against the assets(profits)
of the company.
=Long term liabilities/Shareholders funds.
Shareholders funds = Equity+Preference+Reserves-Ficticious
assets
| Is This Answer Correct ? | 6 Yes | 2 No |
Hi all i did my M.B.A financ enw iam doing a job as a finance executive but i feel it is not good 4 me can any 1 plz guide me 4 the better career my job profile is (INVOICING)hw it is help me out 4 the better career shell i continu ein the same 1 by learning sap or oracle or shall i shift to any other if any other which job is suites to me plz suggest me
can aney one explain it what is spin off / split off ?
Expand---------SDRT?
Tell me if the company wants to enhance thier business and incured the cost on other building (like Buliding Material, Iron and Others) so we will put it in to the expenses or i have to put it into the Fixed asset land and buildin by passing this entry Land and Building (Dr) Bank/Cash/Detors) (Cr) Thanks
How to change the voucher date in tally ?
Who is Home minister of India?
why are capital account shown in liabilities side what is meaning of capital account in balance sheet
i want to know that i have issued c form on 07.01.12 to a party outside of state against period of bill on 2011 which c form has issued by the sales tax department on 10.10.10, it is correct
Expand ------UCIL
2 Answers Uranium Corporation of India,
Explain Cash Basis of accounting
How do I raise a debit note
1.how can carry forward the balance of ledgers to the next financial year in tally erp 9