First, the debt ratio of tangible net assets reveals the relationship between total liabilities and tangible net assets, which can measure how much tangible property protection creditors can get when enterprises go bankrupt and liquidate. From the perspective of long-term solvency, the lower the index, the better.
Second, the biggest feature of the tangible net debt ratio index is to deduct intangible assets from the net assets that can be used to repay debts. This is mainly because the measurement of intangible assets lacks reliable basis and cannot be used as debt repayment resources.
3. The debt ratio analysis of tangible net assets is the same as that of property right ratio, and the ratio of total liabilities to tangible net assets should be maintained at 1: 1.
Fourth, when using the ratio of property rights, we must make further analysis with the index of tangible net debt ratio.