The debt ratio is calculated by dividing:
A.
total debt by total assets.
B.
total assets by long-term liabilities.
C.
long-term liabilities by total assets.
D.
total assets by total debt.
Correct answer-------------(A) Total debt by total assets.
.
Debt ratio is calculated by dividing Total debts(short term and long term liabilities of whatever nature) with total assets.
The business;s total liabilities are shown as a percentage of total asset which tells how much of the assets are financed by liability. This is one of the solvency ratios.
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets...
The cash flow on total assets ratio is calculated by: Multiple Choice Dividing average total assets by cash flows from financing activities. Total cash flows divided by average total assets times 365. Dividing total cash flows by average total assets. Dividing average total assets by total cash flows. Dividing cash flows from operations by average total assets.
The debt-to-equity ratio: Multiple Choice Is calculated by dividing book value of secured liabilities by book value of pledged assets. Is a means of assessing the risk of a company's financing structure. Ο Is not relevant to secured creditors. Ο Can always be calculated from information provided in a company's income statement.
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets divided by total liabilities c. total assets minus total liabilities d. current assets divided by current liabilities 2) The common size income statement reports each income statement item as a percentage of a. net sales b. net income c. gross sales d. total assets
rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt Ratio Total Debt 4, Debt- Equity Ratio Total Equity 4Equity Multiplier Total Assets Total Equity 3,4: 241 26 Long-term Debt Ratio Long-Term Debt3.011 Long-Term Debt+ Total Equity 9.09 29 Times Interest Earned Ratio 30 EBIT Interest 398.5 3,821, Cash Coverage Ratio EBITt Depreciationl (39857 Interest (382110 Cost of Goods Sold NA Inv 976,600 Inventory Turnover Inventory Period Ending 9/30/2018 Current Assets Cash And Cash...
The denominator of the debt to total assets ratio is: A) Total fixed assets only B) Total fixed assets + total current assets C) Total current assets only D) Total assets + stockholders' liability
the ratio that describes the proportion of total assets supplied by creditors is A. Debt-to-equity B. Debt to total assets C. Debt to accounts receivable D. none of the above
Air Taxi, Inc. has a long-term debt ratio of 48 and a current ratio of 1.27. Current liabilities are $3,526, sales are $10,792, profit margin is 8 percent, and ROE is 11.7 percent. What is the total of the firm's net fixed assets? $ Long-term debt ratio Current ratio Current liabilities Sales Profit margin Return on equity 0.48 1.27 3,526 10.792 8.0% 11.7% Output area: Current assets Net income Total equity Long-term debt Total debt Total assets Net fixed assets
Which of the following is not correct with respect to the debt to assets ratio? Multiple Choice A. Cyclical companies (those whose sales fluctuate widely due to changing economic conditions) generally have a higher debt to assets ratio. B. Cyclical companies (those whose sales fluctuate widely due to changing economic conditions) generally have a smaller debt to assets ratio. C. A high debt ratio increases long-term solvency risk. D. The percentage of long-term debt to assets would be higher for...
A company's debt ratio is computed as total assets minus total liabilities divided by total assets. TRUE/ FALSE ??