Mlekabdellatif

 Analysis of a Company's Use of Debt 1.  Debt to Total Capital  This measures the proportion of debt used given the total capital structure of the company. A large debt-to-capital ratio indicates that equity holders are making extensive use of debt, making the overall business riskier. Formula 7.32 Debt to capital  =   total debt                             total capital Where: Total debt  = current + long-term debt Total capital  = total debt + stockholders' equity 2. Debt to Equity This ratio is similar to debt to capital. Formula 7.33 Debt to equity  =   total debt                          total equity ...

Financial Risk  - This is risk related to the company's financial structure. I. Analysis of a Company's Use of Debt 1.  Debt to Total Capital  This measures the proportion of debt used given the total capital structure of the company. A large debt-to-capital ratio indicates that equity holders are making extensive use of debt, making the overall business riskier. Formula 7.32 Debt to capital  =   total debt                             total capital Where: Total debt  = current + long-term debt Total capital  = total debt + stockholders' equity 2. Debt to Equity This ratio is similar to debt to capital. Formula 7.33 Debt to equity  =   total debt               ...

Financial Ratios - Financial Risk Ratios Financial Risk  - This is risk related to the company's financial structure. I. Analysis of a Company's Use of Debt 1.  Debt to Total Capital  This measures the proportion of debt used given the total capital structure of the company. A large debt-to-capital ratio indicates that equity holders are making extensive use of debt, making the overall business riskier. Formula 7.32 Debt to capital  =   total debt                             total capital Where: Total debt  = current + long-term debt Total capital  = total debt + stockholders' equity 2. Debt to Equity This ratio is similar to debt to capital. Formula 7.33 Debt to equity  =   total debt        ...