How much better or worse off are the providers of risk capital than providers of debt capital? To put it differently, how many times is the return on equity to cost of borrowed funds (i.e. return on debt capital)?
The higher this ratio the better off are the owners of the business compared to the lenders.
Below is graphical visualization of the above.
The ratios, analyses pertaining to Return on Equity (RoE) and Cost of Borrowed Funds, represented in the below chart are based on information drawn from financials (e.g. financial statements comprising balance sheet, income statement or profit & loss account) of listed companies across the globe.
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