The DEBT RATIO is a measure of long-term solvency and of the portion of assets financed...

 

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The DEBT RATIO is a measure of long-term solvency and of the portion of assets financed by debt. It compares total liabilities to total assets. (in 000's) Total Assets Total Liabilities DEBT RATIO= Wal-Mart 1/31/2021 $252,496,000 164,965,000 Debt ratio Total Liabilities Total Assets Tesla 12/31/2020 $52,148,000 29,073,000 1) Calculate the total equity for each corporation. (in 000's) Total Equity 2) Compute the debt ratio for each corporation Debt Equity United Airlines 1/31/2021 $59,548,000 53,588,000 3) What percentage of Wal-mart's assets were financed with debt? 4) What percentage of Wal-Mart's assets were financed with equity? 5) A company financed heavily with debt will tend to have a debt ratio 6) Which companies rely the most heavily on debt to finance assets? 7) If the debt ratio measures the amount of financial risk. Which company has the most financial risk? 8) In general, a company that has higher financial risk will be required to pay Asset Equity Apple 12/31/2020 $351,002,000 287,912,000 The DEBT RATIO is a measure of long-term solvency and of the portion of assets financed by debt. It compares total liabilities to total assets. (in 000's) Total Assets Total Liabilities DEBT RATIO= Wal-Mart 1/31/2021 $252,496,000 164,965,000 Debt ratio Total Liabilities Total Assets Tesla 12/31/2020 $52,148,000 29,073,000 1) Calculate the total equity for each corporation. (in 000's) Total Equity 2) Compute the debt ratio for each corporation Debt Equity United Airlines 1/31/2021 $59,548,000 53,588,000 3) What percentage of Wal-mart's assets were financed with debt? 4) What percentage of Wal-Mart's assets were financed with equity? 5) A company financed heavily with debt will tend to have a debt ratio 6) Which companies rely the most heavily on debt to finance assets? 7) If the debt ratio measures the amount of financial risk. Which company has the most financial risk? 8) In general, a company that has higher financial risk will be required to pay Asset Equity Apple 12/31/2020 $351,002,000 287,912,000

Answer rating: 100% (QA)

To calculate the total equity and debt ratio for each corporation based on the provided information ... View the full answer