Question
Calculate debt equity ratio from the following information:

Rs 
Total Assets 
15,00,000 
Current Liabilities 
6,00,000 
Total Debts 
12,00,000 
Solution
`"Debt Equity Ratio" = "Debt "/"Equity"`
`"Equity" = "Total Assets"  "Total Debts"`
= `15,00,000  12,00,000`
= `3,00,000`
Long Term Debts = Total Debts − Current Liabilities
`"Debt Equity Ratio" = "Long Term Debt"/"Equity"`
or,`"Debt Equity Ratio" = "6,00,000"/"3,00,000" = 2/1= 2:1`
Is there an error in this question or solution?
Solution Calculate Debt Equity Ratio from the Following Information: Concept: Types of Ratios.