Explain the funded debt to total capitalization ratio, Managerial Accounting

Assignment Help:

Funded debt to total capitalization ratio

The ratio establishes a link among the long term funds raised from outsider and total long term funds available in the business. The two words used in this ratio are 1) funded debt and 2) total capitalization.

Though there is no rule of thumb but still the lesser the reliance on outsider the better it will be. If this ratio is smaller better it will be upto 50% or 55% this ratio may be too tolerable and not beyond.

The ratio of 18.18% is quite low. The company has not relied much on outside sources for raising long term funds. There is enough scope for the company to raise long term loans from outsiders.

 


Related Discussions:- Explain the funded debt to total capitalization ratio

Total overhead cost variance, Problem From the following data, calculat...

Problem From the following data, calculate overhead variances of following: (a) Variable overhead expenditure variance (b) Fixed overhead expenditure variance (c) Total ov

Management accounting , Management Accounting 1) Which is concerned wi...

Management Accounting 1) Which is concerned with provision of information to people within the organization to help them make better decisions? Management accounting is concer

Distinguish between income and substitution effects, Question 1: (a) Us...

Question 1: (a) Use indifference curves to distinguish between income and substitution effects. (b) Hence, using the above techniques explain why the demand curve slope down

What is kaizen, What is kaizen Kaizen is the Japanese term for continuo...

What is kaizen Kaizen is the Japanese term for continuous improvement. The kaizen concept was pioneered by in Japan by Toyota as daily challenge to all its to improve their pro

Prepare cash budgets, QUESTION 1 PART A  You are provided with t...

QUESTION 1 PART A  You are provided with the given information relating to ABC Limited. The accountant is currently developing the budget for the next three months endin

Theory of metagames, THEORY OF METAGAMES This theory appears to describ...

THEORY OF METAGAMES This theory appears to describe how most people play non-zero sum games involving any number of persons. Prisoner's dilemma is an example of this; the ai

Credit investigation, Once the credit information is accumulated the subseq...

Once the credit information is accumulated the subsequent step is to analyze the gathered information and isolate those matters that may need further investigation. The factors whi

Introduction to Management Accounting, What is Costco''s Financial decision...

What is Costco''s Financial decisions, Centralized or decentralized?

Financial management, discuss the applicability of an operating cycle in ve...

discuss the applicability of an operating cycle in vegetable growing in a low developed country like Uganda- Africa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd