Debt-Equity ratio:
Debt-equity ratio means the proportion of total liabilities to total
Analysis of Debt-Equity ratio:
The company having higher debt-equity ratio means that it had relied more on outside funds rather than stockholder's funds. Hence, such companies are considered as more risky as compared to other companies.
The debt-equity ratio of the company with current scenario and after borrowing and analysis of the same.

Want to see the full answer?
Check out a sample textbook solution
Chapter 14 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
- Pinnacle Industries has an inventory turnover of 78 days, an accounts payable turnover of 45 days, and an accounts receivable turnover of 52 days. What is Pinnacle Industries' cash conversion cycle?arrow_forwardI am trying to find the accurate solution to this general accounting problem with appropriate explanations.arrow_forwardI am trying to find the accurate solution to this general accounting problem with appropriate explanations.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





