Go to the web site of the American Cancer Society and look a
Go to the web site of the American Cancer Society and look at their 2014 financial statements.
http://www.cancer.org/aboutus/whoweare/financialinformation/combinedfinancialstatements/2014-combined-financial-statements
1) Calculate their capital structure ratio (i.e., total liabilities divided by total assets).
Solution
Debt to asset ratio shows the proportion of a company\'s assets which are financed through debt.
Calculation of Capital structure ratio / Debt to asset ratio:
Debt to asset ratio = Total liabilities ÷ Total assets
Total liabilities on December 31, 2014 = $1,893,983,000
Total Assets on December 31, 2014 = $680,571,000
Therefore, Debt to asset ratio = $680,571,000 ÷ $1,893,983,000 = 0.36 times or 36%
