The debt to income ratio gives an indication of the sustainability
of the debt load of your business.
Use information from your business' annual profit and loss and
balance sheet to input into the calculator.
For information on using this calculator see below.
The ability of a business to service debt depends on
its income and cost structure. The debt to income ratio
provides a simple measure of the total liabilities of a
business compared to its income.
Both the amount and the stability of income streams have a
bearing on the level of sustainable debt. In general, larger
business operations and those with stable cashflow can sustain
higher debt ratios provided they have efficient costs structures.
The debt to income ratio can be important in the risk management
process of a business.
Ratios should be considered over a period of time (say three years),
in order to identify trends in the performance of the business. You
should seek professional advice to fully analyse the debt to income
ratio.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.
ANZ will not store the information provided in this calculator.
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