(i) Debt equity ratio |
(ii) Proprietary ratio |
(iii) Total assets to debt ratio |
Particulars | 31st March, 2017 Amt (Rs.) | |
I. | EQUITY AND LIABILITIES | |
1. Shareholders' Funds | ||
(a) Equity Share Capital | 45,00,000 | |
(b) Reserves and Surplus | 9,00,000 | |
2. Non-current Liabilities | ||
Long-term Borrowings | 27,00,000 | |
3. Current Liabilities | ||
(a) Short-term Borrowings | 6,00,000 | |
(b) Trade Payables | 33,00,000 | |
Total | 1,20,00,000 | |
II. | ASSETS | |
1. Non-current Assets | ||
(a) Fixed Assets: Tangible Assets | 49,50,000 | |
(b) Long-term Investments | 4,80,000 | |
2 Current Assets | ||
(a) Inventories | 27,30,000 | |
(b) Trade Receivables | 37,20,000 | |
(c) Cash and Cash Equivalents | 1,20,000 | |
Total | 1,20,00,000 |
Answer:
(i) Debt Equity Ratio \[=\frac{\text{Long}-\text{term}\,\text{Debts}*}{\text{Shareholders }\!\!'\!\!\text{ }\,\text{Funds}**}=\frac{27,00,000}{54,00,000}=0.5:1\] *Long-term Debts = Long-term Borrowings = Rs. 27,00,000 *Shareholders' Funds = Equity Share Capital + Reserves and Surplus = 45,00,000 + 9,00,000 = Rs. 54,00,000 (ii) Proprietary Ratio \[=\frac{\text{Shareholders }\!\!'\!\!\text{ }\,\text{Funds}}{\text{Total}\,\text{Assets}}=\frac{54,00,000}{1,20,00,000}=0.45:1\] (iii) Total Assets to Debt Ratio \[=\frac{\text{Total}\,\text{Assets}}{\text{Long}-\text{term}\,\text{Debts}}=\frac{1,20,00,000}{27,00,000}=4.4:1\]
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