Debt to Equity Ratio

To have the better understanding regarding debt to equity ratio kindly go through the  explanation given below.  

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity. The Debt/Equity ratio indicates how much debt a company is using to finance its assets relative to the amount of value represented in shareholders' equity.

Formula to calculate Debt/Equity Ratio

Total Liability -Shareholder's Equity 

For example  :
suppose a company has a total shareholder value of Rs. 120,000 and has Rs 420,000 in liablities Its debt/equity ratio is then 3.5 (4,20,000/1,20,000) or 350%, indicating that the company has been heavily taking on debt and thus has high risk. Conversely, if it has a shareholder value of RS 420,000 and Rs. 120,000  in liabilities, the company’s D/E ratio is 0.2857(1,20,000 / 420,000), or 28.57%, indicating that the company has taken on relatively little debt and thus has low risk

what should be understand be different level of Debt/Equity 

Regards

Mukesh Kapri

 

What will happen to immigration when Britain leaves the EU?

Eurosceptics say Brexit will allow Britain to take back control of its borders in order to curb immigration and increase security. 

Britain will no longer have to accept ‘free movement of people’ from Europe, which Brexiteers say puts pressure on public services such as the NHS and schools.

Brexit campaigners have said that Britain will be free to impose an ‘Australian-style points system’ to better manage immigration and fill skill shortages here. 

But the Remain campaign believes that Brexit will hit the British economy, which relies on the free movement of EU migrant workers such as health professionals. 

What is Brexit?

The people of Britain voted for a British exit, or Brexit, from the EU in a historic referendumon Thursday June 23. 

The outcome has prompted jubilant celebrations among Eurosceptics around Europe and sent shockwaves through the global economy. 

After the result, the pound fell to its lowest level since 1985 and David Cameron resigned as Prime Minister of this country on Friday June 24.

He said: “I will do everything I can as Prime Minister to steady the ship over the coming weeks and months.

"But I do not think it would be right for me to try to be the captain that steers our country to its next destination.” 

The next Prime Minister, who will be in place by September 9, will decide when to tell the EU that Britain wants to go using Article 50

The use of Article 50 starts the timer on two years of exit talks before the UK is expelled from the political bloc.

Eurosceptic MP Boris Johnson has ruled himself out of the Tory leadship contest after his ally Michael Gove stabbed him in the back by removing his support.

Mr Gove is standing in the leadership contest against the Home Secretary Theresa May, energy minister Andrea Leadsom, Stephen Crabb and Liam Fox. 

The Brexit vote has sparked calls for a second Scottish independence referendum because of majority of Scots voted to remain in the EU during the referendum. 

Spain's Government has also called for joint control of Gibraltar and Sinn Fein is demanding a vote to unite Ireland and Northern Ireland.  

Labour MPs have backed a motion of no confidence in the leader of the opposition Jeremy Corbyn amid mass resignations over to his lukewarm support for the EU.

Leading Brexiteer Nigel Farage resigned as the leader of Ukip on Monday July 4 after achieving his life goal of getting Britain out of the EU.