GREY:CHALF - Post by User
Post by
markgreenon Jan 01, 2022 1:34am
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Post# 34275725
DE Ratio =68. For every $1 Chalice owns, it owes $68 in debt
DE Ratio =68. For every $1 Chalice owns, it owes $68 in debtIn any successful business environment, companies must have adequate revenue to support debt costs (Something Chalice does not have & had for a long time) while also covering operations (Chalice is in the red, - $1.5MM Operations Cash Flow). With this in mind, several financial ratios can be used to help identify how much debt is too much. Common financial ratios to assess debt leverage may include the following:
Debt-to-equity ratio (chalice has a 68 ratio, meaning for every dollar it owns, there are $68 in debt or simply, Chalice Liabilities are 68 times its equity).
Simply put, this takes a company’s total liabilities divided by shareholder equity. Ideal values vary based on industry standards, which offer some guide on effective business debt leveraging.