Balance sheet ratios,
Definition of Balance sheet ratios:
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