On the other hand, Khind Holdings Bhd debt/equity ratio is 1.2316, indicating this company has heavily taking on debt and thus has high risk. Long-term debt to equity is calculated by comparing the long-term liabilities of the company then divides the total amount with shareholder equity. The main idea of this ratio is that the more leverage a company has, the higher the resulting ratio. Most of the time, companies that have a high ratio are the ones bringing the most risk. A long-term debt to equity ratio which is greater than 1.0 indicates that the company has more liabilities than equity which is not a good thing for a company as it can lead to lots of financial problems, especially the company getting bankrupt. A high long term debt to equity ratio would indicate the financial weakness of the firm and the liabilities would most likely increase the risk of the
On the other hand, Khind Holdings Bhd debt/equity ratio is 1.2316, indicating this company has heavily taking on debt and thus has high risk. Long-term debt to equity is calculated by comparing the long-term liabilities of the company then divides the total amount with shareholder equity. The main idea of this ratio is that the more leverage a company has, the higher the resulting ratio. Most of the time, companies that have a high ratio are the ones bringing the most risk. A long-term debt to equity ratio which is greater than 1.0 indicates that the company has more liabilities than equity which is not a good thing for a company as it can lead to lots of financial problems, especially the company getting bankrupt. A high long term debt to equity ratio would indicate the financial weakness of the firm and the liabilities would most likely increase the risk of the