Total Outside Liabilities to Tangible Net Worth Calculator

How to Use the Calculator:

1. If you are in the 'Home' page, please Click on the post title to enter the 'Post Page' and proceed.
2. Please Wait for the game/ excel sheet to load - it may take a minute depending on the speed of your internet connection.
3. Please study the post/ article Total Outside Liabilities to Tangible Net Worth (TOL/ TNW) Formula for proper prior understanding.
4. Please enter your values for loan amount, rate of interest and the loan period in years..
5. Please input your values only in the designated cells (filled with yellow) in the excel sheet. All other cells are protected and are not intended to be altered.
6. To clear the contents of the designated cells please refresh the page.
7. This current ratio calculator is currency neutral - that is it can be used for any currency.

Total Outside Liabilities to Tangible Net Worth (TOL/ TNW) Formula

TOL / TNW Formula:

TOL/ TNW Ratio Formula

Meaning:

This ratio measures the total leverage employed by the business; meaning that the firm has used its net worth as a lever to raise outside funds.

Too much of leverage is not good as it may pose a problem for the organisation to repay the obligations during periods of stress.

Example:

TOL/ TNW Example of NMDC Ltd.

Recommended Number:

TOL/ TNW shall be less than 3 - meaning that a business can have total outside liabilities of a maximum of three times its tangible net worth. Lower number means more safety and a higher number means weakness.

Infographic:

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