The debt ratio measures the ratio of debt capital to total capital or Equity of a company. It shows the extent to which a company is financed by debt.
Detailed explanation/description:
In SAP Business One, the debt ratio is not a predefined key figure by default. However, it can be determined using the balance sheet data. To do this, the liability items "liabilities" (debt) and "equity" are used to calculate the ratio manually or via a user-defined query. The ratio serves as an indicator of a company's capital structure and financial risk.
Integration into business processes:
The debt ratio is an important decision-making basis for financial management, particularly for investments, loan negotiations and credit checks. It helps to assess long-term stability and independence.
Relevant modules and functions:
- financial accounting
- Balance sheet report
- User-defined queries (UDQs)
- Pervasive Analytics Designer (SAPHANA)
Concrete application examples:
- A company compares the debt ratio of different locations to assess financial stability.
- A controller uses a self-generated query to monitor the development of debt on a monthly basis.
- A financial analyst integrates the ratio as a KPI on the overview dashboard in the web client.
Key features/important aspects:
- Determination via balance sheet items (liabilities, equity)
- No standard function - can be created via UDQ or KPI design
- Indicator for capital structure, debt and credit rating
Versino Financial Suite
the Versino Financial Suite extends SAP Business One with a convenient, automated and transparent solution for calculating and analysing the debt ratio. It helps companies to better understand their capital structure, manage financial risks and make well-founded financial management decisions.
Target group:
Finance department, controlling, management, consultants