This might be a dumb question, but I can’t seem to find a clear answer.
When calculating the debt-to-equity ratio, is Total Debt just equal to Total Liability? If not, what are some items that are categorized as liability but not debt?
Thanks,
its generally the case for many questions. but in some rare occasions (i cant remember which ones), some asset items are treated as debt and some liablility items are not considerred debt for analysis purposes.
I’m not exactly sure but I’m thinking for debt they mean short term bonds, long term bonds, notes, etc (Financing). Liabilities which wouldn’t be counted as debt are things such as wages payable, unearned revenue, etc. Hope this helps.
Yes, debt is just everything that is plainly debt, long-term and short-term). Liabilities included debt and other current liabilities such as payables.
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