What is Segment Debt Ratio ?
Segment Debt Ratio is the debts and obligations that are directly attributable to specific business segments or divisions within a company. These liabilities arise from the operations and activities of the segment and are distinct from the company's overall liabilities. Segment liabilities may include accounts payable, accrued expenses, debt, provisions for warranties or product returns, and other liabilities incurred by the segment in its day-to-day operations. These liabilities may also include any contingent liabilities or obligations that are specific to a particular segment. Segment liabilities are reported alongside other segment-specific financial metrics in segment reporting, as required by accounting standards. Companies disclose information about segment liabilities to provide stakeholders with insights into the financial health and performance of individual business units. Segment liabilities represent the financial obligations associated with individual business segments within a company.
How to Calculate Segment Debt Ratio?
Segment Debt Ratio calculator uses Segment Debt Ratio = Segment Liabilities/Segment Assets to calculate the Segment Debt Ratio, Segment Debt Ratio represents the financial obligations associated with the activities of individual business units or divisions, as opposed to the company's overall liabilities. Segment Debt Ratio is denoted by SDR symbol.
How to calculate Segment Debt Ratio using this online calculator? To use this online calculator for Segment Debt Ratio, enter Segment Liabilities (SL) & Segment Assets (SA) and hit the calculate button. Here is how the Segment Debt Ratio calculation can be explained with given input values -> 0.8125 = 130/160.