Ratio of the Month: Working Capital
Type: Computing debt management ratios. Here the debt ratio, defined as total debt/total assets, is .443, which we can think of as 44.3/100. So lenders have contributed 44.3¢ (debt money, or liabilities) to buy assets for each 55.7¢ ($1.00 minus 44.3¢) that owners (equity money) have contributed. ................
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