Question
Calculate the Debt/Equity Ratio of the company from the above information.
Refer to the following Date for Q2-Q3 Balance Sheet Amount (Rs.) Fixed Assets 3,00,000 Cash 60,000 Inventory 40,000 Total Assets 4,00,000 Â Â Share Capital 2,00,000 Long term Debt 1,64,000 Trade Payables 36,000 Total Equity and Liabilities 4,00,000Solution
Debt/Equity = Debt/Equity                        = 1,64,000/200,000                        = 0.82 times
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