Accounting word of the week

This week we are looking at the word Fixed Asset-To-Equity Capital ratio.

This is a computation that indicates whether or not a company has the ability to satisfy long-term debt. A ratio of greater than one means that some of the fixed assets that are owned are financed by debt.

One of the services that you receive from A & C Bookkeeping Services is a ratio analysis. Please reach out to us and we will be happy to serve you.