Question A firm has total assets of $638,727, current assets of $203,015, current liabilities of $122,008, and total debt of $348,092. What is the debt-equity ratio?Can you provide the forumla?

KVRRM7 The Asker · Accounting

A firm has total assets of $638,727, current assets of $203,015, current liabilities of $122,008, and total debt of $348,092. What is the debt-equity ratio?

Can you provide the forumla?

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HP9XVX

Step 1Debt Equity RatioDebt Equity ratio which gives the insight of the comparison between the total liabilities and the share holders equity.  It helps to the assessment of the total strength in the company while comparing the total liabilities the issuance of the share holders equity.  If the Debt equity ratio shows higher percentage it will be risk in in the case of shareholders investment in the company as well.  If the Debt equity ratio shows lower percentage it is considered to be the best in the shareholders for their investment in the company as well.Formula for Debt Equity Ratio= Total Liabil ... See the full answer