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What is the relationship between debt to assets and debt to equity ratio?

 Debt to Assets = total debt / total assets

its measure how the debt covered by assets , important for supplier to see who to recover it money

2- Debt to equity = debt / equity 

As beer as total assets more than the equity so , debt to assets less than debt to equity 

 

  

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Question added by Maged Mansour CMA , chief accountant , Al Jabr Holding Company - Investment Sector
Date Posted: 2017/08/06
zeinab Fakih
by zeinab Fakih , Audit Manager and Tax Expert , FAKIH AUDIT

The debt-equity ratio is a leverage ratio that compares a company's total liabilities to its total shareholders' equity. It is a measurement of the percentage of the company's balance sheet that is financed by suppliers, lenders, creditors and obligors versus what the shareholders have committed.

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