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What is debt to tangible net worth ratio?
What is the ratio of debt to net worth?
What does a lower total debt to total tangible net worth mean?
What is a debt-to-net worth ratio?
Debt to Tangible Net Worth Ratio = Total Debt / Total Tangible Net Worth. Because this ratio takes the intangible assets out of the company’s total assets, it’s often known as the debt to tangible net worth ratio. You can easily find all of these figures reported on a firm’s balance sheet.
Debt to Tangible Net Worth = Total Liabilities / (Equity - Intangible Assets) Goal of the Ratio. The goal of this ratio is a see the amount of leverage present if intangible assets are removed. When is it used? This ratio is generally reserved for businesses that include a large amount of intangible assets on their balance sheet.
2 days ago · Interpreting the Ratio. To find the Debt to Tangible Net Worth Ratio, you divide a company’s debts by its real worth, ignoring non-physical assets. If the ratio is over 1.0x, it means the company might not have enough real assets to cover its debts.
Jul 10, 2023 · The debt-to-net worth ratio is a metric used to assess the extent to which a company's assets are funded by debt. A higher ratio indicates a greater...
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- Current Ratio. Actual Covenant Description: Borrower shall maintain a ratio of current assets to current liabilities of not less than 1.20 to 1.00, as of the end of each fiscal quarter.
- Debt to Tangible Net Worth Ratio. Actual Covenant Description: Borrower shall maintain a ratio of debt to tangible net worth of not more than 1.00 to 1.00 as of the end of each fiscal quarter.
- Fixed Charge Ratio. Actual Covenant Description: Borrower shall not suffer or permit the fixed charge coverage ratio, for the most recently completed trailing 12 months, to be less than 2.25 to 1.00.
- Leverage Ratio. Actual Covenant Description: Borrower shall not suffer or permit the leverage ratio, for the most recently completed trailing 12 months, to exceed 2.00 to 1.00.
Debt to tangible equity is a financial ratio that provides insight into a company's capital structure and financial health. It measures the amount of debt a company holds relative to its tangible equity or tangible net worth.
Debt to Tangible Net Worth means, as of any date in question, the ratio of (a) total Indebtedness on the balance sheet of any Issuer to (b) the fair market value of all assets on the balance sheet of any Issuer except for (i) goodwill, including any amounts representing the excess of the purchase price paid for assets or stock acquired over the ...
