Debt ratio, also known as debt operating ratio, is used to measure the ability of enterprises to use the funds provided by creditors to conduct business activities and reflect the safety of creditors in issuing loans. By comparing the total liabilities and total assets of an enterprise, it is reflected in the debt ratio of all assets of the enterprise.
2. The calculation formula of debt ratio is: asset-liability ratio = total liabilities/total assets × 100%.
1. Total liabilities: refers to the sum of various liabilities undertaken by the company, including current liabilities and long-term liabilities.
2. Total assets: refers to the sum of all assets owned by the company, including current assets and long-term assets.
The lower the ratio, the better. Because the owners (shareholders) of the company generally only bear limited liability, once the company goes bankrupt and liquidates, the realized income of the assets is likely to be lower than its book value. So if this index is too high, creditors may suffer losses.
When the asset-liability ratio is greater than 100%, it means that the company is insolvent, which is very risky for creditors. To judge the asset-liability ratio (2) whether it is reasonable to judge the asset-liability ratio (2) whether it is reasonable, first of all, it depends on whose position you stand. Asset-liability ratio (2) This indicator reflects the ratio of debt provided by creditors to total capital, also known as debt operating ratio.
Third, what is the asset-liability ratio?
Asset-liability ratio = total liabilities ÷ total assets × 100%
From the financial point of view, it is generally believed that China's idealized asset-liability ratio is around 40%. Listed companies are slightly higher, but the asset-liability ratio of listed companies generally does not exceed 50%. In fact, different people should have different standards. Business operators emphasize that the asset-liability ratio should be moderate, because the debt ratio is too high and the risk is great; The debt ratio is low, but it is too conservative. Creditors emphasize the low asset-liability ratio and always want to lend money to those enterprises with low debt ratio, because if a certain enterprise has low debt ratio, the possibility of money recovery will be greater. Investors usually don't take a stand easily. Through calculation, if the return on investment is greater than the loan interest rate, then investors are not afraid of high debt ratio, because the higher the debt ratio, the more money they earn. If the return on investment is lower than the loan interest rate, it means that the money earned by investors is eaten up by more interest. In this case, the operators of enterprises should not be required to maintain a high asset-liability ratio, but should maintain a low asset-liability ratio.