NET DEBT TO TOTAL ASSETS | |||||||||
Definition | |||||||||
Total Interest-bearing debt / Total assets | |||||||||
Calculation Rules | |||||||||
Total 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 one indicator of how much debt an organization can incur and still cope without financial difficulty. | |||||||||
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