Re: [ vuZs.net ] Confusion of Units for Leverage Ratios?

Financial ratios can be expressed in terms of  %age or times. It makes no difference which  term you are using. 

If you want to use %age sign then multiply the value with hundred and if you don't want to put %age sign but want to use Times. 

Then you don't need to multiply it with hundred.  For example, Debt/equity ratio  can be expressed in following two ways.

Debt-to-equity = Total Debt/ Total equity

                            = 15,00000 / 10,00000

                            = 1.5 times or 150%

Note: Normally financial ratios are expressed in percentage.

Regards

Umeed

www.vuzs.net

On Thu, Aug 4, 2011 at 10:42 PM, mc090401434 Hasnain Mehmood <mc090401434@vu.edu.pk> wrote:

Confusion of Units for Leverage Ratios?

Dear all,

Confusion about leverage ratio (except times interest earned ratio which is confirmto be expressed in times)

what about rest of the leverage ratio,

debt ratio, debt/equity, debt to tangible net worth ratio, total capitalization ratio?

either these should be expressed in times or %?

if in % is your answer then

answer should be multiplied by 100,

 or not (mean to express answer as it is without multiplying with hundred and by just putting % sign)

Kindly clear if any one know and early pls

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