Finance Leverage Ratio

Total Debts to Assets: Provides information about the company’s ability to absorb asset reductions arising from losses without jeopardizing the interest of creditors. Formula: Total Liabilities Total Assets Capitalization Ratio: Indicates long-term debt usage. Formula: Long-Term Debt Long-Term Debt + Owners’ Equity Debt to Equity: Indicates how well creditors are protected in case of the […]

How To Calculate Wealth

Wealth measures the value of all the assets of worth owned by a person, community, company or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. How to Calculate Your Net Worth: Make a list of all of your assets: This includes retirement savings, your current checking […]