Comparing liabilities and debt to shareholder equity
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la verne
Apprentice
Joined: 10 Feb 2005
Posts: 6
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 Posted: 02/06/11 - 09:25 Post subject: |
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| Good evening everybody. My name is Amy and I would appreciate if you could tell me something about one financial measure. I cannot remember which measure is comparing liabilities and debt to shareholder equity. Can you tell me something about it? Thank you in advance for your posts. I am looking forward to them. |
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josephina
Apprentice
Joined: 03 Dec 2006
Posts: 5
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| Posted: 03/07/11 - 22:52 Post subject: |
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| Hello Amy. I have to admit that sometimes it is really hard to remember all those financial measures. There are just so many of them. What you probably refer to in your question is a measure called capitalization ratio. Capitalization ratio is kind of structure of company’s capital, where you have all debts, preferred and common stocks, shareholder equity and other. This measure can be quite useful when making investment decision, because it can imply relative risk of investing in it. Well, that would be all from me. If you have any other questions about finance, feel free to ask. Take care! |
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