Debt Ratios

The Ford Motor Company (F) designs, manufactures, markets, and sells cars, trucks, and sport utility vehicles (SUVs). Ford is a major competitor of General Motors Company (GM). The following data (in millions) were adapted from recent financial statements of Ford Motor Company:

		Year 2		Year 1
Total assets		$258,537		$256,540
Total liabilities		225,352		220,608
Total stockholders' equity		33,185		35,932

1. Compute the debt ratio for Years 1 and 2. Round to one decimal place.

	Year 2	Year 1
Debt ratio	______ %	______ %

2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place.

	Year 2	Year 1
Ratio of stockholders' equity to total assets	______ %	______ %

Answer rating: 100% (QA)

To compute the debt ratio and the ratio of stockholders equity to total assets we can use the follow... View the full answer