Debt to asset ratio is a ratio of total liabilities to total assets. This is a leverage ratio that assesses the level of assets financed through debt. The higher the debt to asset ratio the more the company is assumed to be exposed to default risk.
Assume a company has total assets of $800,000 that are both equally finance with debt and equity. This means the debt to asset ratio will be 50% or 0.5. If the debt is $700,000 then the debt to total asset ratio will be 0.875 or 87%. This is a very high-risk situation and shareholders will normally oppose such type of capital structure.
Suppose the following data were taken from the 2017 and 2016 financial
The bookkeeper for Packard’s Country Music Bar left this incomplete balance sheet
Grouper Company provides you with the following balance sheet information as of
Comparative financial statement data for Loeb Corporation and Bowsh Corporation, two
René Kelly, president of RL Industries, wishes to issue a
Your parents are considering investing in Apple Inc. common stock.
Suppose the following information was reported by Gap, Inc.
Recently, it was announced that two giant French retailers, Carrefour
As a financial analyst in the planning department for Erin Industries,
Suppose the following data were taken from the 2017 and 2016 financial
