Buyback of shares

Is current liabilites included in debt while calculating debt equity ratio for buyback???
Replies (3)
Quick Summary
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.

Current debt+non current debt must be used. 

Secured + Unsecured debt must be used. 

Just use Equity and Debt only 

Tradepayables should be included??

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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