Saturday, August 2, 2014

Debt Ratios:Debt Equity Ratios

Series : Ratio Analysis    (12 th Post)

This Ratio helps us to understand  the relationship between the Capital invested by the contributors & the capital contributed by the shareholders

The higher the ratio, the greater the risk associated with the Company’s Obligations to the creditors in the event of Liquidation.

Formula Debt Equity Ratio % = Total Liabilities or Debt / Total Equity

Next Post on Ratio Analysis:  Debt Ratios :Capitalization Ratio

In my quest for learning value investing I came acrros this interesting article and thought would like to share this with the community
Comments  / Improvements and points worth considering are welcome

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1 comment:

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