《财务英语Chap003》.ppt

* Note that these are often called solvency ratios. TE = total equity, and TA = total assets. The numerator in the total debt ratio could also be found by adding all of the current and long-term liabilities. The firm finances approximately 28% of its assets with debt. Another way to compute the D/E ratio if you already have the total debt ratio: D/E = Total debt ratio / (1 – total debt ratio) = .28 / .72 = .39 Note the rounding error as compared to the direct method applied in the slide. The EM is one of the ratios that is used in the DuPont Identity as a measure of the firm’s financial leverage. * Note that these are often called solvency ratios. TE = total equity, and TA = total assets. The numerator in the total debt ratio could also be found by adding all of the current and long-term liabilities. The firm finances approximately 28% of its assets with debt. Another way to compute the D/E ratio if you already have the total debt ratio: D/E = Total debt ratio / (1 – total debt ratio) = .28 / .72 = .39 Note the rounding error as compared to the direct method applied in the slide. The EM is one of the ratios that is used in the DuPont Identity as a measure of the firm’s financial leverage. * Note that these are often called solvency ratios. TE = total equity, and TA = total assets. The numerator in the total debt ratio could also be found by adding all of the current and long-term liabilities. The firm finances approximately 28% of its assets with debt. Another way to compute the D/E ratio if you already have the total debt ratio: D/E = Total debt ratio / (1 – total debt ratio) = .28 / .72 = .39 Note the rounding error as compared to the direct method applied in the slide. The EM is one of the ratios that is used in the DuPont Identity as a measure of the firm’s financial leverage. * Note that these are often called solvency ratios. TE = total equity, and TA = total assets. The numerator in the total debt ratio could also be found by adding all of