article thumbnail

After-Tax Cost of Debt – How to Calculate it For Your Business

Debt RR

It’s important to understand how debt impacts a company’s bottom line so businesses can optimize their financial strategy. Calculating the after-tax cost of debt is one way business owners can determine how much value their debt provides. Debt Financing. It’s the most conservative debt option for both parties.

article thumbnail

HOW TO DETERMINE DEBT CAPACITY FOR A COMPANY

Debt RR

It’s effectively the cash flow for the business but excludes things like capital structure, debt financing, methods of depreciation, and taxes. Whatever a company’s plans, use this guide as a reference to put together a debt capacity model that reflects the company’s financial future.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is a Debt Ratio and why it’s a Key Financial Metric

Debt RR

Difference Between the Debt-to-Equity Ratio? The debt ratio usually refers to the debt-to-asset ratio, which is different from the debt-to-equity ratio. Where the debt-to-asset ratio compares how much debt financed a company’s assets, the debt-to-equity ratio analyzes how much of the assets were purchased using equity.

article thumbnail

How to Determine Debt Capacity for a Company

Debt RR

It’s effectively the cash flow for the business but excludes things like capital structure, debt financing, methods of depreciation, and taxes. Whatever a company’s plans, use this guide as a reference to put together a debt capacity model that reflects the company’s financial future.