Finance Formulas / July 13, 2018 / Heaven Estes
When the cross elasticity of demand for product A relative to the change in the price of product B is negative, it means that the quantity demanded of A has decreased relative to an increase in the price of product B. An increase in the price of B will reduce the quantity demanded of A.
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.
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