Uchida Genetics Corporation develops and markets biological pharmaceuticals. Uchida is approaching the bond market to raise money to buy equipment to manufacture a new biological therapy. The following is an extract from Uchida Genetics’ statement of financial position:

Required 

a. Prior to approaching the bond market, Uchida’s management would like you to determine the company’s debt to equity and net debt as a percentage of capitalization ratios for both years. 

b. Explain whether Uchida’s debt to equity ratio and net debt as a percentage of capitalization ratios have improved in 2024.

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UCHIDA GENETICS CORPORATION Statement of Financial Position (in thousands) Current assets Cash Trade receivables Inventories Total current assets Non-current assets Property, plant, and equipment Right-of-use-assets Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Short-term borrowings Current portion of long-term debt Total current liabilities December 31, December 31, 2024 2023 $ 245,000 255,000 300,000 800,000 1,250,000 150,000 15,000 1,415,000 $2,215,000 $ 15,000 200,000 50,000 265,000 $ 260,000 570,000 400,000 1,230,000 1,050,000 200,000 10,000 1,260,000 $2,490,000 $ 25,000 275,000 60,000 360,000