Debt to equity ratio is the ratio of total liabilities of a business to its shareholders' equity. It is a leverage ratio and it measures the degree to which the assets of the business are financed by the debts and the shareholders' equity of a business.
Debt-to-Equity Ratio = Total Liabilities/ Shareholders' Equity
Both total liabilities and shareholders' equity figures in this formula that can be obtained from the balance sheet.
Debt service coverage ratio is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments.
In government finance, it is the amount of export earnings needed to meet annual interest and principal payments on a country's external debts.
In personal finance, it is a ratio used by bank loan officers in determining income
property loans. It meant to that the property is generating enough income to pay its debts.
The Break-even Point is the point at which the gains equal the losses. The point where sales or revenues equal expenses or also the point where total costs equal total revenues. There is no profit made or loss incurred at the break-even point.
The balance of payments is the method to measure and monitor international monetary transactions for a period of time of a country. Usually, it is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the balance of payment in order to determine how much money is going in and out. If a country has received money this is known as a credit, and if a country has paid or given money, this is known as a debit.
Back to back L/C is two letter of credit that used together to help a seller finance the purchase of equipment or services from a subcontractor. With the original LC from the buyer's bank in place, the seller goes to his own bank and has a second LC issued, with the subcontractor. The subcontractor is thus ensured of payment upon fulfilling the terms of the contract.
Like most LCs, this is used primarily in international transactions, with the first
LC serving as collateral for the second.
Asset-liability management (ALM) is the practice of managing risks that arise due to mismatches between the assets and liabilities of the bank. Banks face several risks such as the liquidity risk, interest rate risk, credit risk and operational risk. The ALM is a strategic management tool to manage interest rate risk and liquidity risk faced by banks and financial companies. Its functions extend to the management of liquidly risk, market risk, trading risk, funding and capital planning and profit planning and growth projection
Agricultural credit is refers to loans that extended for agricultural purposes. Agricultural credit systems promote the expansion and continued survival of farm and livestock operations, covering the entire agricultural chain - input supply, production and distribution, wholesaling, processing and marketing. Banks lend to farmers for a variety of purposes, including (1) short-term credit to cover operating expenses, (2) mid-term credit for investment in farm equipment and real estate improvements, (3) long-term credit for composition of farm real estate and construction financing, etc.