Buyback of shares

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35 Points Posted on 04 June 2020
Is current liabilites included in debt while calculating debt equity ratio for buyback???
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On 04 June 2020 at 15:45 Report
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This discussion clarifies the calculation of the debt-equity ratio specifically for share buyback scenarios. It confirms that current liabilities, including trade payables, are generally not included in the 'debt' component when determining this ratio. The focus should be on secured and unsecured debt, both current and non-current, alongside equity.

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My grammar is 💯 good I
7306 Points Posted on 04 June 2020

Current debt+non current debt must be used. 

Secured + Unsecured debt must be used. 

Just use Equity and Debt only 

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On 04 June 2020 at 16:06
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35 Points Posted on 04 June 2020
Tradepayables should be included??
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On 04 June 2020 at 16:09
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My grammar is 💯 good I
7306 Points Posted on 04 June 2020

No. Payables are formed due to bills payable. You can find workings here:

https://accounting-simplified.com/financial/ratio-analysis/debt-to-equity.H T M L

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On 04 June 2020 at 16:33

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