Indirect Debt ratio

TOTAL ASSETS / EQUITY'S BOOK VALUE

The indirect deb is the ratio between the total invested capital (total assets) and the equity capital (equity’s book value) to indicate how many Euro of investment have been realized against one Euro of equity invested.

Generally speaking, we can take this Indirect Debt ratio as a KPI for Credit Risk Management to be used for the analysis of capital and company's financial strengths which can help to measure the overall financial risk of enterprises.

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