What is the difference between "net debt ratio" and "net asset debt ratio"?

The difference between "net debt ratio" and "net asset debt ratio" is as follows:

The debt-to-equity ratio of net assets, also known as the debt-to-equity ratio, reflects the relative relationship between the capital provided by creditors and the capital provided by shareholders, and whether the basic financial structure of securities operating institutions is stable.

Debt-to-equity ratio refers to the ratio of corporate liabilities to corporate net assets. This is an indicator used to reflect the structure of total assets. When the net assets and liabilities are too high, it means that the corporate liabilities are too high. It is also an important indicator to measure the long-term solvency of enterprises, reflecting the degree of protection of the interests of creditors by the owners' rights and interests of enterprises during liquidation.

The net debt ratio is different from the asset-liability ratio, and the asset-liability ratio is the ratio of total liabilities to total assets, which is very different in both numerator and denominator. It should be said that the net debt ratio is an index reflecting the financial structure of enterprises. Enterprises with high net debt ratio may have little risk, because there may be a large number of long-term loans in their debt structure and sufficient mortgaged property. In this way, its financial situation is likely to be healthy, and it can create greater returns for shareholders through high-debt financial leverage. On the other hand, the quality of enterprises with low net debt ratio may not be superior, because not only can they not fully enjoy the high return of shareholders brought by financial leverage, but a large number of idle monetary funds also affect the operating efficiency of enterprises.

The Measures for the Administration of Securities Companies stipulates the upper limit of the net asset-liability ratio, that is, the external liabilities of comprehensive securities companies (excluding the transaction settlement funds deposited by customers and the funds entrusted for investment management) shall not exceed 9 times of their net assets, and the external liabilities of brokerage securities companies (excluding the transaction settlement funds deposited by customers) shall not exceed 3 times of their net assets. It is also stipulated that when the external liabilities of comprehensive securities companies exceed 8 times of their net assets or brokerage securities companies exceed 2 times of their net assets, they must report to the China Securities Regulatory Commission within 3 working days, and explain the reasons and countermeasures.

1, current ratio: represents the comprehensive ability of an enterprise to repay current liabilities with current assets.

2. Current ratio = current assets/current liabilities.

3. Quick ratio: represents the comprehensive ability of an enterprise to repay its current liabilities with quick assets.

4. Quick ratio = (current assets-inventory) ÷ current liabilities.

5. Accounts receivable turnover rate (times): refers to the average number of times accounts receivable are recovered in a certain period, which is the ratio of the net sales income of goods or products to the average balance of accounts receivable in a certain period. Its calculation formula is: turnover times of accounts receivable = net sales income ÷ average balance of accounts receivable; In which: net sales revenue = sales revenue-sales discounts and allowances.

6. Average balance of accounts receivable = (accounts receivable at the beginning+accounts receivable at the end) ÷ 2; Inventory turnover rate (times) = cost of sales ÷ average inventory; In which: average inventory = (inventory at the beginning of the year+inventory at the end of the year) ÷2.

7. Inventory turnover days =360/ inventory turnover rate = (average inventory ×360)÷ cost of sales.

8. Net profit rate of sales = (net profit ÷ sales revenue) × 100%.