Long term Debt to Equity ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
LTDER = LTD/SF
This formula uses 3 Variables
Variables Used
Long Term Debt to Equity Ratio - Long term Debt to Equity Ratio shows how much of a business assets are financed by long-term financial obligations, such as loans, creditors, bills payable etc.
Long Term Debt - Long Term Debt is the debt whose maturity value is more than one year.
Shareholders Fund - Shareholders Fund is the balance sheet value of the shareholders' interest in a company.
STEP 1: Convert Input(s) to Base Unit
Long Term Debt: 1000000 --> No Conversion Required
Shareholders Fund: 50000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
LTDER = LTD/SF --> 1000000/50000
Evaluating ... ...
LTDER = 20
STEP 3: Convert Result to Output's Unit
20 --> No Conversion Required
FINAL ANSWER
20 <-- Long Term Debt to Equity Ratio
(Calculation completed in 00.020 seconds)

Credits

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Created by Aashna
IGNOU (IGNOU), India
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BMS College of Engineering (BMSCE), Bangalore
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23 Financial Accounting Calculators

DuPont Analysis
​ Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
Internal Rate of Return
​ Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment
Net Operating Cycle
​ Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)
Discount Lost
​ Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))
Annual Equivalent Cost
​ Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)
Net Present Value
​ Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))
Annual Percentage Yield
​ Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1
Effective Yield
​ Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1
Depletion Charge per Unit
​ Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Value of Stock
​ Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
​ Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Operating Cash Flow
​ Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes
EBITDA
​ Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
Discount Percentage
​ Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Residual Value
​ Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
Long term Debt to Equity ratio
​ Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
EBIT
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Depletion Expense
​ Go Depletion Expense = Depletion Charge per Unit*Units Consumed
Shareholders' Equity given Total Assets and Liabilities
​ Go Total Shareholders' Equity = Total Assets-Total Liabilities
Discount Factor
​ Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)
Discount given Discount Rate and List Price
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Discount given List Price and Price Paid
​ Go Discount = List Price-Price Paid
List Price
​ Go List Price = Price Paid+Discount

Long term Debt to Equity ratio Formula

Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
LTDER = LTD/SF

What is Long term debt to equity ratio?

Long term debt to equity ratio shows how much of a business assets are financed by long-term financial obligations such as loans, creditors, bills payable etc. This ratio highlights how a company’s capital structure is tilted either toward debt or equity financing.

How to Calculate Long term Debt to Equity ratio?

Long term Debt to Equity ratio calculator uses Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund to calculate the Long Term Debt to Equity Ratio, Long term Debt to Equity ratio shows how much of a business assets are financed by long-term financial obligations such as loans, creditors, bills payable etc. Long Term Debt to Equity Ratio is denoted by LTDER symbol.

How to calculate Long term Debt to Equity ratio using this online calculator? To use this online calculator for Long term Debt to Equity ratio, enter Long Term Debt (LTD) & Shareholders Fund (SF) and hit the calculate button. Here is how the Long term Debt to Equity ratio calculation can be explained with given input values -> 20 = 1000000/50000.

FAQ

What is Long term Debt to Equity ratio?
Long term Debt to Equity ratio shows how much of a business assets are financed by long-term financial obligations such as loans, creditors, bills payable etc and is represented as LTDER = LTD/SF or Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund. Long Term Debt is the debt whose maturity value is more than one year & Shareholders Fund is the balance sheet value of the shareholders' interest in a company.
How to calculate Long term Debt to Equity ratio?
Long term Debt to Equity ratio shows how much of a business assets are financed by long-term financial obligations such as loans, creditors, bills payable etc is calculated using Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund. To calculate Long term Debt to Equity ratio, you need Long Term Debt (LTD) & Shareholders Fund (SF). With our tool, you need to enter the respective value for Long Term Debt & Shareholders Fund and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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