Question
As at 31 March 2025, Ace Ltd. has long-term borrowings
of ₹4,00,00,000, working capital loans of ₹1,00,00,000, and shareholders’ funds amounting to ₹6,00,00,000. The finance team wants to compute the Debt-Equity Ratio for the balance sheet. What’s the appropriate debt-equity ratio using long-term borrowings only?Solution
• Use long-term borrowings ₹4Cr ÷ equity ₹6Cr = 0.67 : 1.
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