Final answer:
The debt-equity ratio for Geomorph Trading is calculated as the sum of the company's total liabilities divided by its total equity, which results in a ratio of approximately 1.58 when rounded to two decimal places.
Step-by-step explanation:
To calculate the debt-equity ratio for Geomorph Trading, you use the company's total liabilities (both current and long-term) and its equity. The formula for the debt-equity ratio is total liabilities divided by total equity. Given the balance sheet, the total liabilities would be the sum of current liabilities, long-term debt, and other liabilities, which is 150 + 220 + 150 = 520. The equity is given as 330. Therefore, the debt-equity ratio would be 520 divided by 330, which when rounded to two decimal places is approximately 1.58.
The debt-equity ratio is a financial ratio that indicates the proportion of debt used to finance a company's assets, relative to the amount of equity. It is calculated by dividing the total debt by the total equity. In this case, the total debt is the sum of long-term debt and other liabilities, which is $220 + $150 = $370. The total equity is given as $330. Therefore, the debt-equity ratio for Geomorph Trading is:
Debt-Equity Ratio = Total Debt / Total Equity = $370 / $330 = 1.12 (rounded to 2 decimal places).