debt to worth ratio
Definition
Ratio that measures a firm's ability to absorb losses, without reducing its ability to service existing debt. Lower this ratio, greater the size of buffer available to creditors/lenders. Formula: (Accounts payable + Long-term debt + Other loans) ÷ Total net worth.
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debt to worth ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
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http://www.businessdictionary.com/definition/debt-to-worth-ratio.html







