Regarding the debt-equity ratio: You say that at a debt-equity ratio of 100% you are almost insolvent. However, if you use the formula, you could also set up the following hypothetical equation with 700,000 equity and 700,000 debt: 700,000/700,000=100% Logically, this cannot mean that you are insolvent, right? Unless the borrowed capital must be repaid immediately. Or is that exactly what is meant by this? Wouldn't the following calculation be more interesting? Total capital/debt=debt ratio (700.000+700.000)/700.000=50%
••
@Vladimir_Pivnev Wouldn't the FC ratio be more appropriate? In other words, the ratio of debt capital to total capital (FK/GK)? Or do you mean something else? 🤔
••