What is the financed debt?

The

debt funded is the amount of long -term debt that the company carries in its balance sheet. It refers to bonds or other debt tools that will ripen in more than one calendar or fiscal year. The non -financed debt is an alternative to the financed debt and represents loans that will ripen for less than one year. The debtor is obliged to make interest payments on debt to his creditors for the period of the loan. Excess debt funded in the balance sheet may prevent the growth and debt capacity of the entity or its ability to obtain future loans.

Long -term debt can be measured in different ways, one of which is the ratio comparing the financed debt to capitalization or financial structure. This is the rate of long -term obligations of the company compared to the ownership of shareholders. To measure the ratio of the company's capitalization, the long -term debt is divided by the sum of the long -term debt and its own capital. The result is multiplied by 100 to get a percentage that represents how many of the total fiThe company's navy structures are due to debt.

The ratio of debt and capital of the company represents its long -term debt in relation to its own capital. It is a equation that divides the debt funded by the company according to total assets. The result multiplied by 100 is a percentage that represents its debt -funded ratio. Based on certain parameters, such as the industry in which society operates, the criteria for a healthy ratio will differ. The low percentage represents a stable balance sheet and represents ways to deploy future capital.

The high level of financed debt compared to its own capital demonstrates the dependence on debt to finance the company's long -term operations, which could reduce future growth and lead to a shareholder's disagreement. While some debt in the balance sheet may be necessary, too much could be particularly harmful during demanding economic times as tssenity Je obliged to make interest payments to their creditors. It could also limit the company's access to larger loans at favorable rates.

There are different types of indebtedness, including long -term debt, short -term debts and operating obligations, all of which are divided separately in the company's balance sheet. When dealing with the company's debt, these loans can characterize one of several ways of financial analysts. The task of analysts is to examine, analyze and evaluate companies on the basis of criteria that include debt and capital.

Analyst, who holds a liberal view of debt, only applies to the debt of the financed company. The milder view deals with long -term and short -term obligations. Analysts who occupy a conservative view of the company's debt are considering their long -term and short -term obligations, in addition to deferred taxes and upcoming retirement benefits for employees.