This Indirect Debt ratio is a KPI that can measures in pecentage terms, the level of indebtedness of a company with third parties who are not related with the company itself.
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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