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Post by account_disabled on Feb 11, 2024 1:31:37 GMT -8
In the study of the capital structure of the firm the ratio of shortterm debt to longterm debt is considered. This refers to the equity mix which includes a mix of debt and equity. Equity here refers to the companys common and preferred stock as well as retained earnings while debt typically includes longterm debt shortterm debt and a portion of the principal amount of preferred stock and operating leases. Important ratios that can be used to understand capital Armenia Email List structure include debt ratio capitalization ratio and debt equity ratio. Therefore one of the key findings in capital structure analysis is thow a firm will finance all of its operations and growth. DE or debt to equity ratio is effective in determining the riskiness of a companys borrowing experience. A formula for a companys capital structure A firms capital structure can be expressed as debt plus common stockholders equity. Capital formationDOTSE Where DO stands for Debt and TSE stands for Total Equity Terminology.
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