Are secured loans used in debt equity calculations?

Hello sir
you have used secured loan in case of debt/equity calcualtion for dominos.Are we using secured loans in all cases?

1 Answer(s)


Georgee - Depends what you mean by "all cases". For pretty much any debt ratio calculation secured loans are always used. Secured loans are the highes level loans in a company - if the ocmpany defaults on these loan tranches then the bank will take away the companys assets. So its an important component of any financial ratio.