Debt Ratio: Debt ratio compares the ratio of total liabilities with total assets of a company. It indicates the amount of assets financed by debt. The lower debt ratio indicates the stronger equity position and companies with higher debt ratio are considered riskier when compared to other companies. The formula for computing debt ratio is as follows Debt ratio = t o t a l l i a b i l i t i e s t o t a l a s s e t s the debt ratio and compare with competitors.

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Chapter D, Problem 15QS

To determine

Debt Ratio: Debt ratio compares the ratio of total liabilities with total assets of a company. It indicates the amount of assets financed by debt. The lower debt ratio indicates the stronger equity position and companies with higher debt ratio are considered riskier when compared to other companies. The formula for computing debt ratio is as follows

Debt ratio = total liabilitiestotal assets

the debt ratio and compare with competitors.

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