no because debt is always bad.
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For a company, the debt ratio indicates the relationship between capital supplied by outsiders and capital supplied by shareholders. Often the debt ratio is computed as total debt (both current and long-term) divided by total assets. Thus if a company has $50,000 in debt and assets of $100,000, its debt ratio is 50%. The debt ratio is also calculated as total debt/shareholders' equity, long-term debt/shareholders' equity, and in other ways. However computed, the debt ratio provides insight into the firm's capital structure and will vary across industries. A low debt ratio isn't necessarily best: If a company can earn a greater return on debt than its cost, the firm should borrow more and raise its debt ratio -- provided the debt burden won't be crushing when business slows. Turning to consumers, the debt ratio is often shorthand for the "debt to income" ratio, i.e., an individual's monthly minimum debt payments divided by monthly gross income. The debt ratio is monitored by credit card companies and determines the consumer's ability to obtain additional credit
When the question asks for it to be expressed in that form. Intrinsically it does not make the slightest bit of difference.
Is 0.15 percent more than .075 percent?
There is no single ratio: the question needs to be more specific.
38% is 6 more percent than 32%.
False
A good debt to asset ratio is typically around 0.5 or lower. This means that a company has more assets than debt, which is seen as a positive indicator of financial health.
A good debt to asset ratio for a company is typically around 0.5 to 0.6, meaning that the company has more assets than debt. This ratio shows how much of the company's assets are financed by debt, with lower ratios indicating less financial risk.
A good debt to assets ratio for a company is typically around 0.5 to 0.6, which means that the company has more assets than debt. This ratio shows how much of a company's assets are financed by debt, with lower ratios indicating less financial risk.
Loan companies typically look at your debt to total asset ratio when making lending decisions. If your debt is more than 50 percent of your total assets, they may not give you a large loan.
True
A good debt to total assets ratio is typically around 0.5 or lower. This means that a company has more assets than debt, which is generally seen as a positive indicator of financial health.
A debt-to-income ratio of more than 20% may indicate that you have borrowed too much relative to your income.
A good debt to asset ratio for a family is typically around 0.5 or lower. This means that the family's total debt is no more than half of their total assets. A lower ratio indicates less financial risk and better financial health.
The debt ratio average for a company is a measure of how much of its assets are financed by debt. It is calculated by dividing total debt by total assets. A higher debt ratio indicates that a company relies more on debt to finance its operations, while a lower ratio suggests a more conservative approach.
A high debt to asset ratio is generally not good for financial stability because it indicates that a company has a high level of debt compared to its assets, which can increase financial risk and make it more difficult to meet financial obligations.
To achieve a good debt-to-equity ratio, a company can implement strategies such as increasing profits, reducing expenses, paying off debt, and attracting more equity investments. Balancing debt and equity effectively can help improve financial stability and growth prospects.