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THE DESIRE of most business owners is to know the accurate value of his or her business.  This is not an easy step, especially when considering the fact that there are many aspects that determine the end results.  In most cases, business owners opt for the easy way out, which is making presumptions.  What they fail to understand is that those presumptions cost them money in the future.  This is where calculating debt to capital ratio comes in handy.
 
Running a business is seldom easy.  There are various financial ratios that ought to be considered in order to realize desired outcomes.  The most common of these ratios is the debt to capital ratio.  This is the ratio that compares the overall debt that a company has to the total capital as seen on the books.  The ratio can be used to assess the amount of average on their hand.  The beauty of the option is that calculating debt to capital ratio is pretty straightforward.
 
Your first step should be in the understanding of the debt to capital ratio.  The Internet is very instrumental when it comes to this step.  There are great sources of information that you can make use of.  In the calculation, you will also have to understand the debt to capital ratio equation.
 
The equation reads as follows: Debt / Shareholders Equity + Debt = Debt to Capital Ratio.  In the equation, the debt represents all debt that the company currently holds.  The debt includes both short and long term debts as shown in the books.
 
Once you have understood the equation, the next thing that you need to do is plug in the various variables.  The total debt should be added to the top equation.  The outstanding stock and minority should go to the bottom line.  After getting the final figure, you should convert it to a percentage.  
 
The key to getting accurate information when using the debt to capital ratio lies in the proper understanding of the equation.  People have different ways of handling the same problems.  Seeking advice from individuals who have done the calculations before will help you come up with accurate information in a painless way.  However, you need to be particularly careful to elude chances of ending with undesired outcomes at the end of the day.  Comparing responses from people who have done the calculations will help demystify the math.
 
All in all, if you are uncertain or uncomfortable with the calculations, it is a great idea to always seek professional help.  There are various accounting firms that have been established to offer a helping hand to people in need of the calculations in debt to capital ratio.  Their competence will help you get the best results in the end.
 
Again, special care ought to be taken when hiring a service provider to help with the calculations.  You will need to research the reputation of the service provider first.  Second, you have to discuss your needs comprehensively with the service provider and be open to the tiniest detail.  This is what will help you get accurate details at the end of the day.