The debt ratio for Deutsche Auto for each of the last three years is shown in the table below:| | Current Year | 1 Year Ago | 2 Years Ago ||----------------|--------------|------------|-------------|| Debt Ratio | 65% | 49% | 41% |Over this three-year period, did the company's risk from financial leverage increase or decrease? **Multiple Choice Options:**- Increase- Decrease

Answer : Debt ratio = Total liabilities / Total assets

Answered: o for Deutsche Auto for each of the…

Business

Accounting

o for Deutsche Auto for each of the last three years follows. tio Current Year 1 Year Ago 2 Years Ago 41% 49% 65%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The debt ratio for Deutsche Auto for each of the last three years is shown in the table below:

| | Current Year | 1 Year Ago | 2 Years Ago |
|----------------|--------------|------------|-------------|
| Debt Ratio | 65% | 49% | 41% |

Over this three-year period, did the company's risk from financial leverage increase or decrease?

**Multiple Choice Options:**
- Increase
- Decrease

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