Based on the below figures, what is the debt ratio?
$\begin{array}{lc}
& £ 000 \
\text { Non-current assets } & 22,000 \
\text { Current assets } & 12,000 \
\text { Equity } & 14,000 \
\text { Non-current liabilities } & 10,000 \
\text { Current liabilities } & 10,000
\end{array}$

Question

Based on the below figures, what is the debt ratio?
$\begin{array}{lc} 
& £ 000 \
\text { Non-current assets } & 22,000 \
\text { Current assets } & 12,000 \
\text { Equity } & 14,000 \
\text { Non-current liabilities } & 10,000 \
\text { Current liabilities } & 10,000
\end{array}$

Quizplus · Accepted Answer

Debt ratio = Total debt / Total assets = (Non-current liabilities + Current liabilities) / (Non-current assets + Current assets) = (10,000 + 10,000) / (22,000 + 12,000) = 20,000 / 34,000 = 0.59

Based on the Below Figures, What Is the Debt Ratio