While using total debt in the numerator of the debt-to-equity ratio is common, a more revealing method would use net debt, or total debt minus cash and cash equivalents the company holds.
Additionally, consider tracking your debt-to-total assets ratio, net-worth-to-total assets ratio, return-on-investments ratio and investment-assets-to-gross-pay ratio. If you consult a financial ...
Understanding the difference between good and bad debt is crucial for financial health. While some debts can pave the way to prosperity, others can lead to financial ruin.
Debt-to-Equity Ratio Definition: A measure of the extent to which a firm's capital is provided by owners or lenders, calculated by dividing debt by equity. Also, a measure of a company's ability ...
Your net worth is the sum of what you own (your assets) minus what you owe (your debt). Net worth can be much more than investments or savings alone. It’s important to understand everything that goes ...
FI ratio, net worth and your savings rate — the percent of your monthly income that you put toward savings, investments or early debt payoff. Together, these three numbers provide a snapshot of ...
Matthew Cadrin has 5+ years of experience as a commercial/agricultural lender and is an officer for the Knights of Columbus Council. Getty Images / Images By Tang Ming Tung Your net worth can tell ...
The amount of equity a company has, which is the difference between its total assets and total liabilities. Your net worth is just as important as your income. Every now and then, you should sit ...