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Capitalization ratio

Capitalization ratio

Description

Capitalization ratio shows the debt component of a company's capital structure (capitalization). Capitalization can be explained as the sum of long term debt and shareholders' equity. Data to calculate this ratio is collected from balance sheet.

Norms and limitations

There are no general norms for this ratio.

It is recommended to compare this ratio with ratios of companies working within the same industry.

Read more... View all financial ratios calculators