balance sheet ratios |
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Definition
Comparisons of balance sheet items to gain insight into the (1) changes in the financial position, (2) strength/weakness of the financial position, and (3) relationship between different items. Two basic balance sheet ratios are the debt ratio (total debt ÷ total assets) and debt to equity ratio (total debt ÷ total equity).
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balance sheet ratios is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
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