Which ratio calculation do we use to get the following result: This ratio determines how much of the assets are financed?

Question

Debt to Equity Ratio
Debt Ratio
Equity ratio
Assets ratio

Answer 1

The ratio that determines how much of the assets are financed by debt is the Debt Ratio.

The Debt Ratio is calculated by dividing total debt by total assets, which indicates the proportion of a company's assets that are financed through debt. It essentially shows how much of the company's assets are funded by liabilities.

So, of the options provided, the correct answer is the Debt Ratio.