MANAGEMENT

Detailed explanation-1: -Debt-to-total assets ratio (debt-to-total capital ratio) The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it has borrowed money from) compared with how much of the company’s assets are owned by shareholders.

Detailed explanation-2: -Total-debt-to-total-assets is a leverage ratio that defines how much debt a company owns compared to its assets. Using this metric, analysts can compare one company’s leverage with that of other companies in the same industry.

Detailed explanation-3: -The debt ratio is also known as the debt to asset ratio or the total debt to total assets ratio. Hence, the formula for the debt ratio is: total liabilities divided by total assets. The debt ratio indicates the percentage of the total asset amounts (as reported on the balance sheet) that is owed to creditors.

Detailed explanation-4: -A debt ratio measures the amount of leverage used by a company in terms of total debt to total assets. This ratio varies widely across industries, such that capital-intensive businesses tend to have much higher debt ratios than others. A company’s debt ratio can be calculated by dividing total debt by total assets.

Detailed explanation-5: -The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to its assets. It is found by dividing a company’s total debt by total shareholder equity.