Segment Debt Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Segment Debt Ratio = Segment Liabilities/Segment Assets
SDR = SL/SA
This formula uses 3 Variables
Variables Used
Segment Debt Ratio - Segment Debt Ratio are the portion of a company's total liabilities that are attributed to specific operating segments within the organization.
Segment Liabilities - Segment Liabilities refer to the obligations and debts that are allocated to specific business segments within a company for the purposes of financial reporting and analysis.
Segment Assets - Segment Assets refer to the assets allocated to different operating segments of a company for the purpose of financial reporting and analysis.
STEP 1: Convert Input(s) to Base Unit
Segment Liabilities: 130 --> No Conversion Required
Segment Assets: 160 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
SDR = SL/SA --> 130/160
Evaluating ... ...
SDR = 0.8125
STEP 3: Convert Result to Output's Unit
0.8125 --> No Conversion Required
FINAL ANSWER
0.8125 <-- Segment Debt Ratio
(Calculation completed in 00.020 seconds)

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Created by Aashna
IGNOU (IGNOU), India
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Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
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Segment Debt Ratio Formula

​LaTeX ​Go
Segment Debt Ratio = Segment Liabilities/Segment Assets
SDR = SL/SA

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.

FAQ

What is 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 and is represented as SDR = SL/SA or Segment Debt Ratio = Segment Liabilities/Segment Assets. Segment Liabilities refer to the obligations and debts that are allocated to specific business segments within a company for the purposes of financial reporting and analysis & Segment Assets refer to the assets allocated to different operating segments of a company for the purpose of financial reporting and analysis.
How to calculate 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 is calculated using Segment Debt Ratio = Segment Liabilities/Segment Assets. To calculate Segment Debt Ratio, you need Segment Liabilities (SL) & Segment Assets (SA). With our tool, you need to enter the respective value for Segment Liabilities & Segment Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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