Debt equity ratio

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Vishnu Agarwal

Vishnu Agarwal (Querist)
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18 August 2008

What is the meaning of debt equity ratio?

Vishnu Agarwal

Vishnu Agarwal (Querist)
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18 August 2008

Explain it by any example.

Vishnu Agarwal

Vishnu Agarwal (Querist)
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18 August 2008

reply as early as possible

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CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)
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18 August 2008 It is the ratio - between the owners fund and other third party funds invested in the business.

Like the Equity Share Capital + Reserves & Surplus is 2

and Debentures, Creditors, Bank Loan and other liabilities is 1

then

debt equity ratio is 2 : 1

Vishnu Agarwal

Vishnu Agarwal (Querist)
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18 August 2008

THANX

Vishnu Agarwal

Vishnu Agarwal (Querist)
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18 August 2008

THANX FOR YOUR REPLY