Asset-liability ratio, also known as debt-to-debt ratio, is a measure of an enterprise ’s ability to use creditors to provide funds for operating activities and an indicator that reflects the safety of creditors ’loans. It is reflected in the enterprise by comparing the total liabilities of the enterprise with the total assets. All assets belong to the debt ratio. It is generally believed that the appropriate level of asset-liability ratio is 40% -60%. <br>②Property ratio. The equity ratio is the ratio of total liabilities to total owner's equity in a joint-stock company, and is an indicator for evaluating the rationality of the fund structure. Generally speaking, the equity ratio can reflect whether the shareholders hold too much equity (or whether it is not sufficient), and indicate the extent of the enterprise's loan operation from another aspect. This ratio is one of the indicators to measure the long-term solvency of enterprises. It is an important sign of the soundness of an enterprise's financial structure. This indicator shows the relative relationship between the source of funds provided by creditors and the source of funds provided by investors, and reflects whether the basic financial structure of the enterprise is stable. The lower the equity ratio, the greater the proportion of the company ’s own capital in total assets, and the stronger its long-term solvency
正在翻译中..