Bob's Burgers has total assets of $425 million. Its total liabilities are $100 million. Its equity is $285 million. Calculate the debt ratio.

Name: Bob's Burgers has total assets of $425 million. Its total liabilities are $100 million. Its equity is $285 million. Calculate the debt ratio.
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Question

Quizplus · Accepted Answer

The debt ratio is calculated by dividing total liabilities by total assets. Here, $100 million (liabilities) divided by $425 million (assets) equals 0.235, or 23.5%.

Bob's Burgers Has Total Assets of $425 Million