How di I determine the ration of liabilities to stockholoder's equity for both companies?
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How di I determine the ration of liabilities to stockholoder's equity for both companies?
Answer quickly need fast answerQuote:
Originally Posted by adanie12
You will have to be more specific on this. I am not sure what is meant by "both companies".
From what I can infer, the ratio is simply your Liability Balance / Owner's Equity Balance.
This ratio is often used to figure out the amount of debt used to finance a company.
Liability/capital(owner equity)
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