Current year's debt ratio is 2.50
Last year's debt ratio is 2.44
Compute Dan's Dependable Delivery debt ratio for two consecutive years?
The debt ratio is the total liabilities divided by the total assets
The debt ratio for the current year = 2.50
The debt ratio for last year =2.44(find attached excel file and formula sheet)
Debt ratio means the portion of the firm's total assets funded using borrowing(external funding), the lower the ratio, the better since having a higher debt means a higher interest would be paid, the higher the debt, the higher the chance of the firm defaulting on paying interest and repaying the principal borrowed.
The fact that the debt ratio has increased in the current year, means that the ratio has worsened because more debt has been taken.
https://brainly.com/question/21406342
#SPJ1
