Company XYZ’s ratio of 40% indicates that 40% of its assets are financed through liabilities, while the remaining 60% is funded by equity. The Total Liabilities / Total Assets ratio is a vital ...

The debt-to-equity ratio (D/E) is a financial leverage ratio that can be helpful when attempting to understand a company's ...

The next step is to identify the company’s total shareholders’ equity. This number represents the residual interest in the company’s assets after deducting liabilities. D/E ratio = $150,000 ...

Other debt-related ratios include the debt-to-equity ratio, the current ratio ... Imagine, for example, that a company has $40 million in total liabilities and $100 million in total assets.

A gearing ratio measures a company's level of debt. Here are some guidelines for a good, bad, or normal gearing ratio.

Return on equity (ROE) is a financial ratio that tells you how much ... It's calculated as Total Assets - Total Liabilities. Shareholders' equity is generally reported on a company's balance ...

The current ratio is a liquidity ... Although the total value of current assets matches, Company B is in a more liquid, solvent position. The current liabilities of Company A and Company B are ...

A basic tenet of double-entry book-keeping is that total assets (what a business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.

The amount of equity a company has, which is the difference between its total assets and total liabilities. Your net worth is just as important as your income. Every now and then, you should sit ...