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Here are some sample average debt-to-asset ratios by various industries: Communication services: 60.85%. ... NextEra Energy has a much higher-than-average ratio for the utility industry. As noted ...
All the ratios listed above can be written as industry averages (something) such as industry averages profitability ratio, represents for the average figures of profitability ratio for a certain industry. [18] Through compare those ratios of a business with the industry averages could obtain its position within the industry.
The debt ratio or debt to assets ratio is a financial ratio which indicates the percentage of a company's assets which are funded by debt. [1] It is measured as the ratio of total debt to total assets, which is also equal to the ratio of total liabilities and total assets: Debt ratio = Total Debts / Total Assets = Total Liabilities ...
A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Similarly, a lower debt-to-capital ratio will indicate that significant portion of the company's capital is funded via Equity Capital.
According to Experian data, the total debt for American consumers reached $17.1 trillion in 2023, with credit card debt increasing 10% from 2022 to 2023. Americans are struggling with the rising...
[1]: 81 A debt instrument is a financial claim that requires payment of interest and/or principal by the debtor to the creditor in the future. Examples include debt securities (such as bonds and bills), loans, and government employee pension obligations. [1]: 207 Net debt equals gross debt minus financial assets that are debt instruments.
The Department of Housing and Urban Development is the government entity that looks at the average debt-to-income ratio and establishes the requirements for housing loans, including the DTI limits
Liquidity ratios measure the availability of cash to pay debt. [3] Efficiency (activity) ratios measure how quickly a firm converts non-cash assets to cash assets. [4] Debt ratios measure the firm's ability to repay long-term debt. [5] Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. [6]