Delta Pty Ltd has the following balance sheet figures.The debt to equity ratio is:
$\begin{array}{|l|r|}
\hline \text{Current assets }& \$ 300000 \
\hline\text{ Current liabilities} & 200000 \
\hline\text{ Non-current assets} & 650000 \
\hline \text{Non-current liabilities }& 150000 \
\hline
\end{array}$
A) 58.3%
B) 36.8%
C) 23.1%
D) 80.0%

Question

Delta Pty Ltd has the following balance sheet figures.The debt to equity ratio is:
$\begin{array}{|l|r|}
\hline \text{Current assets }&  \$ 300000  \
\hline\text{ Current liabilities} & 200000 \
\hline\text{ Non-current assets} & 650000 \
\hline \text{Non-current liabilities }& 150000 \
\hline
\end{array}$
A) 58.3%
B) 36.8%
C) 23.1%
D) 80.0%

Quizplus · Accepted Answer

The debt to equity ratio is calculated as Total Liabilities / Equity. Total liabilities are $350,000 ($200,000 + $150,000). Equity is $600,000 ($950,000 total assets - $350,000 total liabilities). The ratio is $350,000 / $600,000 = 0.583 or 58.3%.

Delta Pty Ltd Has the Following Balance Sheet Figures A) 583% B) 36

Delta Pty Ltd Has the Following Balance Sheet Figures A) 583%
B) 36