Understand Debt to Equity ratio is a debt ratio which measures the degree to which the assets of a business is being financed by obtaining debt and equity. or how much debt is being used by a company relative to the amount of equity for the financing of its assets? Formula Debt to Equity ratio = Total […]

## Adaptation: Definition, Types & Example

Understand Adaptation is a mutation or change which helps animals and plants, survive in their environment. Due to beneficial nature of that mutation, it is passed down to the next generations. As organisms keep on inheriting the trait, it becomes an integral part of the species and is called an adaptation. Every organism lives in […]

## Pari Passu: Definition & Example

Understand Pari Passu is a law term, made with two latin words pari meaning “an equal” and passu meanings “step” which are translated as “in equal proportion” or “on equal footing”. It is used to describe any instance where object is divided in equal proportion among related parties. In bankruptcy, the term is used for […]

## Working Capital Ratio: Definition, Formula & Example

Definition In financial analysis, working capital ratio or current ratio is used to measure liquidity position of a company; it is calculated by dividing current assets by current liabilities. The formula to calculate working capital ratio is as under: Working capital ratio = Current assets/Current Liabilities Example Suppose, you have $1,000 and want to invest […]