In practice, a good total debt to total assets ratio depends on the type of business or industry. However, in theory, some say it should be 40%, while...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer ...
There is no one figure that characterizes a “good” debt ratio, as different companies will require different amounts of debt based on the industry in which they operate. For example, airline companies may need to borrow more money, because operating an airline requires more capital than a so...
The company's debt-to-asset ratio as measured by the balance sheet will A. Increase if the assets are purchased, and decrease if the assets are leased. B. Increase if the assets are purchased, and remain unchanged if the assets are leased. C. Increase whether the assets are purchased ...
Question: A firm has a debt to asset ratio of 60%, $300,000 in debt, and net income of $50,000. Calculate return on equity. A. 60% B. 20% C. 25% D. not enough information Return on Equity: Return on equity...
What Is a Good Debt-to-Equity Ratio? The optimal debt-to-equity ratio will tend tovary widely by industry, but the general consensus is that it should not be above a level of 2.0. While some very large companies in fixed asset-heavy industries (such as mining or manufacturing) may have...
Understanding the Debt to Equity Ratio is essential for making informed financial decisions. Businesses with a high D/E ratio often have greater financial risk, as they depend more on debt to fund operations. On the other hand, companies with a low D/E ratio may be seen as financially stabl...
Debt to Assets Ratio:The total financing for the assets of a given firm may be carried out by using debt and equity. The proportion of the debt and the equity in the total capital is usually indicated by the capital structure of the firm. The ratio which can be determi...
(CPI) rose by 2 percent. The total volume of trade in goods rose by 7.7 percent. The deficit-to-GDP ratio was kept at 2.8 percent, and central government revenue and expenditure were in line with budget projections, with expenditure slightly lower than the budgeted figure. A basic ...
Over these five years, the deficit-to-GDP ratio and the government debt ratio were respectively kept within 3 percent and around 50 percent. We continued to improve the structure of government spending and ensured sufficient funding for key areas such as education, science and technology, ...
In 2021, facing the triple pressure of demand contraction, supply shock, and weakening expectations, China's textile industry still showed a good development trend. According to the data of the China National Textile and Apparel Council, the revenue of textile enterprises above the designated size ...