Category: Financial Ratios

Q31. Assets to equity ratio How is the assets to equity ratio calculated? A31. Assets to equity ratio = Financial leverage ratio = Average total

Q30. Times interest earned ratio How is the times interest earned ratio calculated? A30. Times interest earned ratio = (A) / (B) Where, (A) =

Q29. Long-term debt to assets ratio How is the long-term debt to assets ratio calculated? A29. Long-term debt to assets ratio = Long-term liabilities /

Q28. Debt to assets ratio How is the debt to assets ratio calculated? A28. Debt to assets ratio = Total liabilities / Total assets [Entity

Q27. Debt to equity ratio How is the debt to equity ratio calculated? A27. Debt to equity ratio = Total liabilities / Total stockholders’ equity

Q26. Working capital ratio How is the working capital ratio calculated? A26. Working capital = Current assets – Current liabilities Working capital ratio = Working