Long-Term Debt Ratio

Long-Term Debt Ratio = Long-Term Liabilities / Equity

• It shows the percentage of Long-Term Liabilities in relation to Equity
• When the ratio is <1…… Then all Long-Term Liabilities are covered by Equity

Business actions to improve the Index

• Increase in Equity either through
• Increase in Profits, or through Decrease in Dividend Yield, Decrease in Provisions, Increase in Share Capital
• Reduce Long-Term Loans either through Repayment of Part of Them, or through Debt Restructuring from Long-Term Liabilities to Short-Term