Debt-to-equity
AccountingTotal borrowings divided by shareholders' equity.
In plain terms
A ratio that trebled for many Indian retailers in FY20 without any borrowing happening — the leases were always there, they were just not written down.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Interest coverage
AccountingOperating profit divided by interest expense.
In plain terms
Debt-to-equity says how much is borrowed; this says whether the company can actually afford it.
Trade payables
AccountingAmounts owed to suppliers for goods and services received in the ordinary course of business.
In plain terms
Funding with no interest line, no covenant and no credit rating, and none of it appears in borrowings, net debt to EBITDA or debt-to-equity. It is repayable on demand in the only sense that matters: the supplier can stop supplying.