The net debt ratio cannot be greater than 100%, which means the debt cannot be too high. If it exceeds 100%, it is insolvent, and all debts are greater than its own assets. Enterprises with high net debt ratio are not necessarily risky, because there may be a large number of long-term loans and sufficient mortgaged property in their debt structure, so their financial situation may be healthy, and they can create greater returns and high-debt financial leverage for shareholders in the following ways. The quality of enterprises with low net debt ratio is not necessarily good, because they cannot fully enjoy the high returns brought by financial leverage to shareholders, and a large number of idle funds and funds will also affect the operating efficiency of enterprises.
1, the net debt ratio is different from the asset-liability ratio, which is the ratio of total liabilities to total assets, and the numerator and denominator are very different. It should be said that the net debt ratio is an index reflecting the financial structure of enterprises. Enterprises with high net debt ratio may have little risk, because there may be a large number of long-term loans in their debt structure, and the corresponding collateral is also sufficient. In this way, their financial situation may be healthy, and they can create greater returns for shareholders through high-debt financial leverage; On the other hand, the quality of enterprises with low net debt ratio may not be high, because they cannot fully enjoy the high returns brought by financial leverage to shareholders, and a large number of idle funds and funds will also affect the operating efficiency of enterprises.
Generally speaking, the higher the ratio of current assets, the more guarantees for creditors. However, if the current ratio is too high, some funds will exist in the form of current assets, which will affect the profitability of enterprises. Therefore, enterprises should measure the current ratio to a more reasonable limit. If it is lower than this limit, it means that the asset-liability ratio may be high, the credit of the enterprise is damaged, and it is difficult to refinance; Exceeding this limit shows that some funds are idle, and the efficiency of fund use is not high, resulting in a waste of funds. Short-term loan analysis: The higher the asset-liability ratio of an enterprise, the more funds it borrows from banks. Therefore, when an enterprise decides to borrow money, it must first analyze the market situation and judge whether to borrow money through the market economic environment, economic situation and economic situation. You can borrow money when the market prospect is good, otherwise it is not suitable for lending. Secondly, it is necessary to analyze whether the profit level of the enterprise after borrowing is higher than the interest level of the loan. If the profit level of the enterprise is higher than the loan interest level, it means that the loan operation of the enterprise is profitable. Third, it is necessary to analyze whether the current assets of the enterprise are greater than the current liabilities. If the current assets are greater than the current liabilities, it shows that the enterprise has solvency and can protect the rights and interests of creditors.
3. The net asset-liability ratio, also known as the asset-liability ratio, reflects the relative relationship between the capital provided by creditors and the capital provided by shareholders, and reflects whether the basic financial structure of securities operating institutions is stable. High debt ratio is a high-risk and high-return financial structure; Low net asset-liability ratio is a financial structure with low risk and low income. This indicator also reflects that the funds invested by creditors are influenced by shareholders.