Long Term Assets Vs Long Term Debt:

Long Term Assets Vs Long Term Debt:

Long Term Assets Vs Long term Debt ratio indicates the relationship

Long Term Assets Vs Long Term Debt =	Long Term Assets
	Long Term Debt

Fixed Assets Ratio/ Equity Ratio:

Fixed Assets Ratio/ Equity Ratio

This ratio indicates the relationship between fixed assets and share holders equity. This ratio tells us about percentages of equity invested in the fixed assets of company.

Fixed Assets Ratio/ Equity Ratio =	Fixed Assets
	Share Holder's Equity

 

Total Capitalization Ratio:

Total Capitalization Ratio:

            Total capitalization ratio indicates the leverage/debt component of a firm. It also tests the soundness of capital structure of a company. Higher share of share holder’s equity in the Capital Structure shows the better solvency position of a company. This ratio supports the company growth and operations.   A low equity share will be risk for the creditors of the company. We calculate this ratio as under:-

Total Capitalization Ratio =	Long Term Debt
	Long Term Debt + Share Holder's Equity

Current Worth / Net worth Ratio

Current Worth / Net worth Ratio

            This ratio is a relationship of working Capital. Current worth and share holders Equity or Net worth. We calculate this ratio as under:-

Current Worth/ Net Worth Ratio=	Current Assets - Current Liabilities
	Total Assets - Total Liabilities

Debt to Tangible Net worth Ratio

Debt to Tangible Net worth Ratio

            We calculate this ratio by dividing total debt of a company to Net worth minus intangible assets. 

Debt to Tangible Net Worth Ratio=	Total Debts
	Net Worth - Intangible Assets