ratio debt equity
Calculating debt/equity ratio?
When calculating the debt to equity ratio, do you include accounts payables as debt?
Also, if possible, can you please explain the difference between the debt ratio and the debt/equity ratio?
Thanks heaps.
Debt/equity= total liabilities/shareholder’s equity… So yes because current liabilities are included in total liabilities.
Debt ratio= total liabilities/total assets
One is equity.. one is for assets.
