Debt includes capital leases. Book value of equity may be less than its market value. Book value of equity includes reserves, adjustments and accrued income. The amount of subordinated debt in relation to the book value of the shareholders' investment. or The proportion of subordinated debt in the firm's invested capital. Use when there is senior and subordinated debt in the capital structure.
Debt includes capital leases.
Book value of equity may be less than its market value. Book value of equity includes reserves, adjustments and accrued income. A standard ratio. Increases caused by lower accounts receivable or inventory turnover may mean declining liquidity. The book value of current assets may be less than their market value due to unsellable inventory or uncollectible accounts receivable.