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Debt equity ratio

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 April 2010 How to calculte D/E ratio in case where Accumulated losses are more equite Capital + reserve surplus? i.e.net equity is nagative.
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
24 April 2010 the ration will be negative.

Similar to negative gross profit ratio when company incurs Loss G P ratio is negative
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shakuntala chhangani

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shakuntala chhangani (Expert)
26 April 2010 Calculate it as Debt / Debt + equity
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CA Ravi Sisodia

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CA Ravi Sisodia (Expert)
26 April 2010 Debt / Debt + (-Equity)

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