Total debt ratio is 0.2.
Total assets = $842,768
Current liabilities = $18,560
Long-term liabilities = $153,954
Total liabilities = $172,514
Total debt ratio = 172,514 / 842,768
Total debt ratio = 0.2
A debt ratio measures the quantity of leverage used by a company in phrases of overall debt to overall property. This ratio varies extensively throughout industries, such that capital-extensive businesses generally tend to have much better debt ratios than others. A organization's debt ratio can be calculated by way of dividing general debt by using total property.
To locate the debt ratio for a corporation, in reality divide the entire debt via the overall belongings. total debt consists of a agency's short and long-term liabilities .
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