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Question
From the following information, calculate Total Assets to Debt Ratio:
| ₹ | ₹ | |||
| Fixed Assets (Gross) | 6,00,000 | Accumulated Depreciation | 1,00,000 | |
| Non-current Investments | 10,000 | Long-term Loans and Advances | 40,000 | |
| Current Assets | 2,50,000 | Current Liabilities | 2,00,000 | |
| Long-term Borrowings | 3,00,000 | Long-term Provisions | 1,00,000 |
Solution
Debts=Long- term Borrowings+Long Term Provisions
=3,00,000+1,00,000=Rs 4,00,000
Total Assets=Non - Current Assets + Current Assets
=6,00,000 -1,00,000+10,000+2,50,000+40,000=Rs 8,00,000
Total Assets to Debt Ratio
= `"Total Assets"/"Debt" = 800000/400000 = 2 : 1`
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