Ask Question
BusinessBusiness
8 February, 15:04

What does it mean if a company has a debt ratio of 101.5%?

+1
Answers (1)
  1. 8 February, 15:11
    0
    Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

    In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What does it mean if a company has a debt ratio of 101.5%? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If Cute Camel's forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.)
Answers (1)
Letitia borrowed $6,000 from her bank two years ago. The loan term is four years. Each year, she must repay the bank $1,500 in principal plus the annual interest.
Answers (1)
Select all that apply. Negative personality traits include the following: controlling humble rude impatient
Answers (1)
Which of the following is an advantage of the sole proprietorship form of ownership? A. Unlimited liability B. Control over the business C. Limited liability D. Split responsibility
Answers (1)
Jane finds a material misstatement while auditing a client's accounts receivables. her senior tells her to ignore the misstatement so that the client does not get upset. jane wants to be viewed as a team player in order to advance in the firm.
Answers (1)
New Questions in Business
The following is a summary of information presented on the financial statements of a company on December 31, 2019.
Answers (1)
A nuclear power plant had a massive spill. Before cleanup begins, it must first be inspected by professionals who can determine dangers posed by the spill. The professionals who are best equipped for inspecting the facility would have careers in
Answers (1)
The primary objective of Porter's five forces model is to understand the profit potential of industries. break down a firm's value chain activities into primary and support. understand valuable, rare, and hard-to-imitate resources.
Answers (1)
What are the two most popular ways people make networking contacts?
Answers (2)
Page (s) 47-49 2.4. What is the trade-off between having more now and having more later? Fill in the blanks to complete the passage about trade-offs. It is characteristic of - goods that they are not used up in the short run.
Answers (1)
Home » Business » What does it mean if a company has a debt ratio of 101.5%?
Sign Up Forgot Password?