# Debt Ratio Formula

Finance Formulas / June 25, 2018 / Kenley Hopper

Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.

### Segment Length Formula

#### Sales Growth Formula

##### Dividend Payout Ratio Formula

###### Profitability Index Formula

Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This metric enables comparisons of leverage to be made across different companies. The higher the ratio, the higher the degree of leverage (DoL) and, consequently, financial risk. The total debt to total assets is a broad ratio that includes long-term and short-term debt (borrowings maturing within one year), as well as all assets – tangible and intangible.

Contribution margin is used by management when making pricing decisions. This is especially true in special pricing or special order situations where fixed costs are sunk costs and should not be factored into the decision whether to accept or reject. Negative or low contribution margins indicate a product line or business segment may not be profitable.

Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment, says Avery. If the company doesn’t sell the equivalent of the BEQ as a result of the investment, then it’s losing money and it won’t recoup its costs. If the company sells more than the BEQ then it not only has made its money back but is making additional profit as well.

### Gallery Of Debt Ratio Formula

### Rate This Debt Ratio Formula

65 out of 100 based on 716 user ratings

In Case You Missed It

## Default Risk Premium Formula

## Gdp Income Approach Formula

### Gross Domestic Product Formula

#### Days Sales In Inventory Formula

##### Net Purchases Formula

###### Profitability Index Formula

##### Leave Your Reply on Debt Ratio Formula

Continue Reading Below

## Segment Length Formula

## Break Even Point Formula

### Cost Per Thousand Formula

#### Direct Materials Used Formula

##### Inventory Cost Formula

###### Portfolio Return Formula