Homework SourseBased on the above figures and the formula for calculating t
Based on the above figures and the formula for calculating the debt-assets where dept is defind to include both short-term and long-term dept
Based on the above figures and the formula for calculating the debt-assets where dept is defind to include both short-term and long-term dept
Solution
You have not mentioned the figures....So I am mentioning the formula and little details about debt -asset ratio.
Formula for Debt Asset ratio = Total Laibilities / Total Assets.
This ratio indicates that proportion of a company\'s assets that are financed with debt, and not with equity. The ratio is used to determine the financial risk of a business. A ratio greater than 1 shows that a considerable proportion of assets are being funded with debt, while a low ratio indicates that the bulk of asset funding is coming from equity.
