Debt to capital ratio is a measure of a company’s financial leverage or how much it relies on debt to finance its assets. It shows how much of a company’s total capital is funded by its total debt. It is calculated by dividing the total debt by the total capital. It is reported as a percentage. The formula for debt to capital ratio is:
Debt to capital ratio = (Total debt / Total capital) * 100
Where:
- Total debt is R0036,
short_and_long_term_debt
- Total capital is BS075,
bs_tot_cap