of the equity holders and the lenders and indicates the company’s policy on the mix of capital funds. The debt to equity ratio is calculated as follows:

**HOWARD ROSS LIBRARY OF MANAGEMENT FINANCIAL RATIOS – RESOURCES ** Debt/ Capital %, Debt as a % of Net Working Capital, Price/Earning Ratio (High-Low), Debt to Equity, Working Capital Ratio, Return on Assets,

**Course 1: Evaluating Financial Course 1: Evaluating Financial ** One final turnover ratio that we can calculate is Capital Turnover. Capital Turnover measures Debt to Equity, Debt Ratio, and Times Interest Earned.

**Analyzing Your Financial Ratios** Long-Term Debt, = Funded Debt to Net Working Capital Ratio The sixth ratio, Cash Flow to Debt, is known as the best single predictor of failure.

**Debt to Equity Ratio** Measuring Solvency and Capital Structure. Debt to Equity Ratio The Debt to Equity Ratio is closely watched by creditors and investors,

**Ratios and Formulas in Customer Financial Analysis** Indicates the turnover in working capital per year. A low ratio indicates Bad-debt ratios measure expected uncollectibility on credit sales.