The coefficient of debt to equity determines the ratio of
borrowed and equity capital of the enterprise, establishes the ratio between the different ways of financing, reflected in the balance sheet, and compares the value of equity and the capital of creditors. Normative value: <0.7.
The dynamics of the ratio of debt to equity of «Zhan-DauLetGroup» LLP is slightly changing during the period under consideration: (10.6) in 2015, (15.6) in 2016 and (22) in 2017.
It should be noted that the value of the coefficient does not correspond to the normative value and is negative, which is due to the high amount of borrowed funds in comparison with the company's minimum equity capital.
Next, ‘let’s calculate the coefficient of the ratio of equity and total assets, the coefficient of financial independence (financial autonomy) (Ke/a):
Кe/а2015 = (6 718) / 71 273 = (0,09)
Кe/а 2016 = (6 183) / 98 092 = (0,06)
Кe/а 2017 = (5 077) / 114 245 = (0,04)
Let’s imagine the dynamics of the ratio of equity to total assets in a graphical form.
Dynamics of the ratio of debt to equity of «Zhan-DauLetGroup» LLP
Dynamics of the ratio of equity to total assets of «Zhan-DauLetGroup» LLP