1
Q
Debt-to-equity
A
Debt-to-equity = Liabilities/Equity
2
Q
Debt-to-value/Debt-to-assets
A
Debt-to-Assets = Liabilities/(Liabiltiies+Equity) = Liabilities/Assets
3
Q
Gearing
A
Gearing = (Liabilities + Equity)/Equity = Assets/Equity
The ratios may consider non-current liabilities only.
4
Q
Interest Coverage Ratio
A
Interest Coverage ratio = Operating profit/Interest Payable
-> A more immediate measure of credit or bankruptcy risk.
Accounting Ratios
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