A company that has a lot of debt is not in the best position to pay out dividends. While this ratio is not necessarily a sign to cut and run, you generally want to look for ratios below 0. If Company X is a relatively new business, this may not be a red flag at all. The company could still be in the process of growing enough to reach a more stable long term debt ratio. In this case, what you would want to check is the year over year change to that ratio. If Company X is steadily chipping away at their debt, you can reasonably assume that they will soon reach a more attractive financial position.
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Tax rate has significant impact on the relation between managerial ownership and long-term debt ratio of the listed companies in Tehran stock exchange Investigating the impact of ownership structure and tax rate on capital structure of the listed companies in Tehran stock exchange. On the other hand, old SMEs' greater ability to obtain long-term debt can contribute to a greater magnitude of the adjustments of long-term debt toward target long-term debt ratio.
Is age a determinant of SMEs' financing decisions? Empirical evidence using panel data models. Its percent of current ratio and 75 percent of long-term debt ratio at the end of June also show its stable funding ability. However, we find that it is the long-term debt ratio , rather than the short-term debt ratio, that is particularly high after Chapter Financial restructuring in fresh-start Chapter 11 reorganizations.
Several ratios are employed, including the quick ratio, debt ratio, pro forma long-term debt to net plant and equipment ratio and working capital to pro forma long-term debt ratio.
In other words, increasing the company's long-term debt ratio reduces immediate ratio. Experimental test of the relationship between financing patterns and financial performance assessment indicators of admitted companies in the stock exchange.
The long-term debt to total assets ratio is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year.
What is the 'Long-Term Debt To Capitalization Ratio' The long-term debt to capitalization ratio, a variation of the traditional debt-to-equity ratio, shows the financial leverage of a firm. It is.
Long-term debt ratio The ratio of long-ter debt to total capitalization. Long-Term Debt/Capitalization Ratio In risk analysis, a way to determine a company's leverage. The ratio is calculated by taking the company's long-term debt and dividing it by the sum of its long-term debt and its preferred and common stock. Put graphically: Ratio = Long-term debt. Long-term debt on the balance sheet is important because it represents money that must be repaid by the company. It's also used to understand the company's capital structure including its debt-to-equity ratio.
Long-term debt ratio: read the definition of Long-term debt ratio and 8,+ other financial and investing terms in the obidytfp.cf Financial Glossary. Long Term debt to Total Assets Ratio = Long Term Debt / Total Assets. For Example, a company has total assets worth $15, and $ as long term debt then the long term debt to total asset ratio would be. = /15, = This means that the company has $ as a long term debt for every dollar it .