Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Because the book value of equity is negative in this case, Clorox's market-to-book ratio and its book debt-equity ratio are not meaningful. Its market debt-equity ratio may be used in comparison.
What is debt-equity ratio?
The debt-to-equity ratio is a financial metric that shows how much debt and shareholder equity were utilized to finance the assets of a company. The ratio, often known as risk, gearing, or leverage, is closely related to leveraging. The debt-to-equity (D/E) ratio demonstrates how much equity and debt are being used by a company to finance its assets. The D/E ratio indicates the capacity of shareholder equity to pay creditors in the case of a corporate downturn. Debt to Equity Ratio = Total Debt / Shareholder Equity is a quick formula. Long formula: Shareholders' equity / (short term debt plus long term debt plus fixed payment obligations).
To learn more about debt-equity ratio visit:
https://brainly.com/question/25651634
#SPJ4
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.
