Calculate Total Assets to Debt Ratio from the following information: Long-term Debts Rs. 4,00,000; total Assets Rs. 7,70,000.

SOLUTION

Long-term Debts = 4,00,000
Total Assets = 7,70,000
Total assets to Debt ratio = Total assets / Debt
= 7,70,000 / 4,00,000
= 1.925: 1