Home › Finance Formulas › Ending Inventory Formula › Moving Average Formula For Calculating Inflow Inventory Blog Ending Learning The Unit Recalculated Each Time New Stock Comes Turns Tur Ratio Beginning Purchases Rate Lifo Days

Finance Formulas / July 13, 2018 / Cecelia Weiss

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of its total assets. In a sense, the debt ratio shows a company’s ability to pay off its liabilities with its assets. In other words, this shows how many assets the company must sell in order to pay off all of its liabilities.

Annual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a percentage. For example, if your loan has an APR of 10 percent, you would pay $10 per $100 that you borrow each year. All other things being equal, the loan with the lowest APR is typically least expensive—but it’s usually more complicated than that.

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