Calculate Debt-equity Ratio Total Assets Total Debts Current Liabilities - CBSE (Arts) Class 12 - Accountancy
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Calculate Debt-Equity Ratio
Debt-Equity Ratio = `"Debts"/"Equity"`
Debts = Total Debts - Current Liabilities
= 2,50,000 - 80,000
Equity = Total Assets - Total Debts
= 350000 - 250000
Debt Equity Ratio = "Debt"/"Equity" = `170000/100000 = 1.7:1`
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Solution Calculate Debt-equity Ratio Total Assets Total Debts Current Liabilities Concept: Solvency Ratios - Debt to Equity Ratio.