Balance sheet ratios

Balance sheet ratios,

Definition of Balance sheet ratios:

  1. Comparisons of balance sheet items to gain insight into the (1) changes in the financial position, (2) strength/weakness of the financial position, and (3) relationship between different items. Two basic balance sheet ratios are the debt ratio (total debt ÷ total assets) and debt to equity ratio (total debt ÷ total equity).

Meaning of Balance sheet ratios & Balance sheet ratios Definition