abdullah10ali11 abdullah10ali11
  • 12-02-2020
  • Mathematics
contestada

The debt ratio of Braun is 0.9 and the debt ratio of Kemp is 1.0. Based on this information, an investor can conclude:


Respuesta :

joshnajd joshnajd
  • 20-02-2020

Kemp has the exactly the same amount of entire assets and liabilities.

Step-by-step explanation:

Debt ratio is the ratio of overall debt to the overall assets and it can be shown as a % or decimal. It's nothing but the financial ratio which measures the degree of company's leverage.  

debt ratio = overall debt / overall assets

If it is 1 then assets and liabilities are the same.

If this ratio is below 1 then the greater part of a firm’s assets is financially supported by equity.  

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