DEBT TO CAPITAL AT BOOK | |||||||||
Definition | |||||||||
Interest bearing debt / Total assets. | |||||||||
Calculation rule | |||||||||
Interest bearing debt = Long term interest bearing debt + Current portion of long term debt + Short term debt | |||||||||
Comment | |||||||||
The ratio evaluates a firm's debt position in relation to its asset position. It is an indicator of how much debt an organization can incur without falling into financial difficulty. | |||||||||
Referent | |||||||||
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