Question

Debt ratio is calculated by 1point

Answer 1

The debt ratio is a financial ratio that measures the proportion of a company's debt to its total assets. It is calculated by dividing the total debt by the total assets and multiplying by 100 to express the result as a percentage.

Step-by-step explanation:

The debt ratio is a financial ratio that measures the proportion of a company's debt to its total assets. It is calculated by dividing the total debt by the total assets and multiplying by 100 to express the result as a percentage. The formula for calculating the debt ratio is:

Debt Ratio = (Total Debt / Total Assets) x 100

For example, if a company has a total debt of $500,000 and total assets of $1,000,000, the debt ratio would be 50%:

Debt Ratio = (500,000 / 1,000,000) x 100 = 50%

Answer 2

Here is the answer that would best complete the statement above. Debt ratio is calculated by dividing total liabilities by total assets. Both the total liabilities and the total assets are present in the balance sheet. In the calculation, make sure that it should be the total amount. Hope this answers your question.