Question : Shareholder fund Rs.14,00,000. Total debt Rs.16,00,000 and current liabilities Rs.4,00,000. The total assets-to-debt ratio will be
Option 1: 2:1
Option 2: 2.5:1
Option 3: 1:1
Option 4: None of the above
Correct Answer: 2.5:1
Solution : Answer - 2.5:1
Total Assets to
Debt Ratio = Total Assets / Debt
= 30,00,000/ 12,00,000 =10/4 = 2.5:1
Total Assets = Share Holder fund + Total Debt
= 14,00,000 +16,00,000
= 30,00,000
Debt = Total Debt - Current liabilities
= 16,00,000 - 4,00,000
= 12,00,000 Hence, the correct option is 2.
Question : Shareholders' Funds Rs. 14,00,000; Total Debts (Liabilities) Rs. 18,00,000; Current Liabilities Rs. 2,00,000. Total Assets to Debt Ratio will be
Question : Total Debts Rs. 15,00,000; Current Liabilities Rs. 5,00,000; Capital Employed Rs. 15,00,000. Calculate Total Assets to Debt Ratio.
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