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Part 1: Financial Statements (46 points)A. Match the term to its description (2 points each)1. ___ Debt to Equity Ratio a. costs associated with producing a product 2. ___ Net Capital Ratio b. a measure
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How to fill out debt-to-equity de ratio formula

01
Determine the company's total debt, which includes both short-term and long-term debts.
02
Calculate the shareholder's equity, which can be found on the balance sheet.
03
Divide the total debt by the shareholder's equity to get the debt-to-equity ratio.

Who needs debt-to-equity de ratio formula?

01
Investors who want to assess a company's financial health and risk.
02
Creditors who are evaluating a company's ability to repay its debts.
03
Financial analysts who are comparing companies within the same industry.

What is Debt-to-Equity (D/E) Ratio ula and How to Interpret It Form?

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The debt-to-equity ratio formula is calculated as Total Liabilities divided by Shareholders' Equity. It measures a company's financial leverage and indicates the proportion of debt used to finance the company's assets.
Companies that are publicly traded or those that seek financing from investors may be required to file the debt-to-equity ratio as part of their financial reporting.
To fill out the debt-to-equity ratio formula, obtain your company’s total liabilities and total shareholders' equity from the balance sheet, and divide total liabilities by total shareholders' equity.
The purpose of the debt-to-equity ratio is to assess the financial leverage of a company, help investors understand the risk involved in a company's capital structure, and evaluate its long-term sustainability.
The information that must be reported includes total liabilities and total shareholders' equity, which are found on the company’s balance sheet.
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