What is the Debt to Equity Ratio Template and why is it important in a business plan for a Landscape Contractor?
The Debt to Equity Ratio is a key ratio that is looked at by lenders and potential partners alike. The Debt to Equity ratio gives a small business owner like Frank Murphy the ability to present this key ratio in both numerical and graphical format to the readers of the business plan. The debt to equity ratio calculates the amount of leverage being employed by the firm when compared to the amount of equity invested by the owners of the firm.
As a general rule the lower the Debt to Equity firm, the better is it is for a small business like Green Lawn Landscaping, Inc. and vice versa. This ratio is calculated by dividing the Total Liabilities or Debt by the Total Shareholders equity.
What calculations go into the Debt to Equity Ratio Template for a small business like Green Lawn Landscaping, Inc.?
There are only two inputs that have to be entered into the Debt to Equity Ratio template input page. One is of course the Total Debt on the balance sheet of a small business like Green Lawn Landscaping, Inc. and the other is the total shareholders equity which is of course the contribution of the shareholders along with the retained earnings. Once these items are entered, the template automatically updates the projected Debt to Equity ratio and then updates the graphic. You can click on the output tab and copy and paste the output directly into the business plan word document.
The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!
The Business Loan Application covers every item you will need in your loan package and tells you how to get approved for business loans.
Fire your loan broker and use our Free Business Loans Bank / Lender Directory to find every bank in the country lending to small businesses.