FINANCE

How do you get total debt ratio, just from knowing the debt to equity ratio?

How do you get total debt ratio, just from knowing the debt to equity ratio?

turn into fraction and add 1 to the ratio and put in denominator ( DE ratio = .5 the Total Debt Ratio is 0.5/1.5 )

total debt ratio

total liabilities / assets

Price per earnings ratio

Price per share / earnings per share

Price per share ratio

price per share / sales per share

EPS

net income / # of shares

Market to book ratio

= market value per share / book value per share

—> (equity / # of shares) / book value per share

net working capital (NWC) formula and definition

a financial metric that represents the difference between a company's current assets and current liabilities. It is calculated using the formula:

NWC = Current assets - current liabilities

• Positive NWC indicates that a company has enough short-term assets to cover its short-term liabilities, which is a sign of financial health.

• Negative NWC may indicate potential liquidity issues.

debt ratio formula

L/A

debt to equity ratio

L/E

PV

Present value

FV

future value

R or N on calc

Interest rate

compound interest

the investment keeps compounding and adding each period more and more. makes more money than simple interest