Several traditional financial ratios (the current ratio and quick ratios, days' sales in inventory, debt and debt-equity ratios
, return on assets, and Altman Z-score) were then calculated based on the equations summarized below.
While there is no settled rule regarding a specific range, acceptable debt-equity ratios
in recent cases have varied from 1.
Some preparations can be done in advance, for example, looking at debt-equity ratios
, interest cover and whether or not the cash generated by the business will be sufficient to service and ultimately repay the debt.
Effect on debt: Debt-equity ratios
increased by a modest amount for the sample.
In the corporate sector major progress has been made in reducing debt-equity ratios
The landlords who have been able to do this have satisfactory debt-equity ratios
Corporate debt-equity ratios
in Korea, which declined following liberalization, returned to its mid-1970s level five years after reform.
In contrast, debt-equity ratios
based on market values increased very little, as higher stock prices offset much of the growth in corporate indebtedness.
because many corporations with what can fairly be called typical capital structures have debt-equity ratios
below the safe harbor ratio in the bill.
This would have a favorable impact on debt-equity ratios
Aggregate book value debt-equity ratios
, based on balance sheet data for nonfinancial firms, have increased sharply in the 1980s, moving outside their range in recent decades, although measures based on market values have risen more modestly.
1955), where the court held that, although examination of debt-equity ratios
may be a relevant inquiry, it is not of primary importance in deciding whether an advance is debt or equity with a debt-equity ratio
of almost 300:1.