Financial eatios

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2012 Sir, i would like to know about ratio

TOL/TNW

AND ADJUSTED TOL/TNW, USED WHILE MAKING A PROPOSAL APPLICATION FOR BANK LOAN AND CREDIT

CA N RAJA

CA N RAJA (Expert)
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16 December 2012 TOL represents Total Outside Liabilities.
TNW represents Tangible Net Worth.

TOL/TNW is nothing but Debt/Equity Ratio.

Bank will look for ratio less than 3.

Adj. TOL/TNW represents adjustment made in TNW for investments made in associates. i.e., investments made in associates will be deducted from TNW to represents true Net Worth of the company.

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