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Anonymous

18 Apr 2019

General Investing

What is the difference between debt to equity ratio and debt to asset ratio ?

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Debt to Equity Ratio indicates the proportion of Debt amount a company has, to its Equity amount. While the Debt to Assets is a ratio that computes the percentage of total assets that are financed by debtors. The difference would be that the debt to assest ratio would involove both tangible and intangible assets whilst the Debt to Equity ratio involves only assets used for operations.

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