Which of the following is the debt-to-equity ratio calculation?
A) Total current liabilities + Total long term liabilities) ÷ total shareholders' equity
B) Total current liabilities ÷ total assets - shareholders' equity)
C) Total liabilities ÷ total liabilities + shareholders' equity)
D) Total long-term Liabilities ÷ Total shareholders' Equity
E) Total current liabilities + total long-term liabilities) ÷ total long-term liabilities + shareholders' equity)

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities (current and long-term) by total shareholders' equity.

Which of the Following Is the Debt-To-Equity Ratio Calculation