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Sec 68
Corporate & Other Laws
While computing debt equity ratio under this section, do we have to take current liabilities as well?
Answers (4)
Ekta Maheshwari
Usually , only debt is considered in calculating debt-equity ratio . D/E ratio = Debt / net worth
Current portion of debt i.e debt due to be paid in next 1 year is shown as part of current liabilities - that amount would be added to non current portion of debt and the ratio is thereafter computed
Sriram Somayajula Admin
Current portion of debt i.e debt due to be paid in next 1 year is shown as part of current liabilities - that amount would be added to non current portion of debt and the ratio is thereafter computed
So, the non current as well as current portion of DEBT is to be included. What about other current liabilities like TRADE PAYABLES?
Thread Starter
Aman MahajanSo, the non current as well as current portion of DEBT is to be included. What about other current liabilities like TRADE PAYABLES?
They are not debt - they will not be included
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