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    orangina's Avatar
    orangina Posts: 2, Reputation: 1
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    #1

    Sep 8, 2013, 03:59 PM
    Accounting Question
    A company has total liabilities of $550 million and total equity of $300 million. Calculate this company's debt ratio.
    ThinkSpace's Avatar
    ThinkSpace Posts: 12, Reputation: 2
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    #2

    Sep 8, 2013, 04:17 PM
    A 'Debt Ratio' would take the Total Liabilities compared to Total Assets.

    With the figures you have provided, you can find the 'Debt-Equity Ratio', which would be:
    Debt-Equity Ratio = Total Liabilities/Total Equity

    183.33%
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Sep 9, 2013, 07:00 AM
    Thank you for cutting and pasting your home work on our web site. We do not do home work for you, which is against site rules. But if you tell us what you think the answer is, then we can discuss it.

    Chuck, moderator
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