calculate debt equity ratio,total asset to debt ratio and proprietory ratio
total assets=2,30,000
total debt=1,50,000
current liabilities=30,000
Thumbs-up to Akhil for providing correct answer of Total Assets to Debt Ratio.
The remaining ratios will be calculated as follows:
Debt-Equity Ratio = Long-Term Debt/Equity (Shareholder's Fund)
Long-Term Debt = Total Debt-Current Liabilities
Rs 1,50,000-Rs 30,000 = Rs 1,20,000.
Equity/Shareholder's Fund = Total Assets-Total Debts
Rs 2,30,000-Rs 1,50,000 = Rs 80,000
Debt-Equity Ratio = Rs 1,20,000/Rs 80,000 = 1.5:1
Proprietary Ratio = Proprietor's Fund/Sharehloder's Fund/Total Assets
Rs 80,000/Rs 2,30,000 = 0.,34:1.
The remaining ratios will be calculated as follows:
Debt-Equity Ratio = Long-Term Debt/Equity (Shareholder's Fund)
Long-Term Debt = Total Debt-Current Liabilities
Rs 1,50,000-Rs 30,000 = Rs 1,20,000.
Equity/Shareholder's Fund = Total Assets-Total Debts
Rs 2,30,000-Rs 1,50,000 = Rs 80,000
Debt-Equity Ratio = Rs 1,20,000/Rs 80,000 = 1.5:1
Proprietary Ratio = Proprietor's Fund/Sharehloder's Fund/Total Assets
Rs 80,000/Rs 2,30,000 = 0.,34:1.