Rytvae Consulting · Think Right · Invest Right
TOL/TNW Ratio Calculator
Result
Chart
Show formula & working
TOL/TNW = Total outside liabilities ÷ Tangible net worth
Typical lender reference: up to 3x (some lenders 4x) — a reference point, not an approval criterion.Details
How this works
TOL/TNW compares everything owed to outsiders with the owners' tangible stake. The higher it is, the thinner the cushion for creditors.
Subordinated promoter loans are often moved from TOL to TNW, which improves the ratio on both sides.
Frequently asked questions
Why tangible net worth?
Intangibles and revaluation gains give little protection to creditors.
Does TOL include trade creditors?
Yes — all outside liabilities, not just borrowings.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.