Debt to Capital Ratio explains how much of the company’s Capital is funded via Debt.
If the Debt is high, its often considered as negative since it brings corresponding interest burden on the company’s profitability.
Hence, keeping a close eye on Debt to Capital ratios helps the stakeholder about the Company’s overall Liquidity Position.
We have discussed more on this topic - Debt to Capital Ratio Explained
Using this template, you can easily arrive at the Debt to Capital Ratio.
- The file includes the template for income statement and balance sheet.
- The main calculation sheet is already linked to the income statement and balance sheet so as to arrive at the Debt to Capital Ratio.