When calculating the debt equity ratio I come across two formulas: 1. D/E= Total Debt/Total...
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Accounting
When calculating the debt equity ratio I come across two formulas:
1. D/E= Total Debt/Total Equity
2. D/E= Total Liabilities/Total Equity
Thus I am confused if :
1. those are the same thing
2. When considering total debt ( do we just include long-term loan, short-term loan and bank overdraft) or should i add all my liabilities both non current and current?
please assist.
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