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

Explain the quick ratio - liquidity ratios, Quick ratio Meaning: this...

Quick ratio Meaning: this ratio establishes a relationship among quick assets and current liabilities Objective: the objective of commuting this ratio is to calculate th

Zero based budgeting, areas where zero based budgeting can be effectively u...

areas where zero based budgeting can be effectively used?

Decision making, A local government authority owns and operates a leisure c...

A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts

Credit information, So as to makes sure that the receivables are collected ...

So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati

Collection effort, The collection policy of a firm is intend at timely coll...

The collection policy of a firm is intend at timely collection of overdue amount and comprises of the subsequent. a.      Monitoring the state of debtors (account receivable)

Illustrate the important steps of budgetary control, Important steps of bud...

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

Cost analysis., monetaryor non monetary which will arise as aresult of impl...

monetaryor non monetary which will arise as aresult of implemenntinng the project

Explain the methods of pricing, Explain the Methods of pricing The fol...

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

Questions., how long will it take to get answers after question are submitt...

how long will it take to get answers after question are submitted

Mba, Describe the impact of different types of standards on motivations, an...

Describe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Company

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