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20 June, 00:23

The debt ratio of Braun is 0.9 and the debt ratio of Kemp is 1.0. Based on this information, an investor can conclude:

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  1. 20 June, 03:31
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    Kemp has the exactly the same amount of entire assets and liabilities.

    Step-by-step explanation:

    Debt ratio is the ratio of overall debt to the overall assets and it can be shown as a % or decimal. It's nothing but the financial ratio which measures the degree of company's leverage.

    debt ratio = overall debt / overall assets

    If it is 1 then assets and liabilities are the same.

    If this ratio is below 1 then the greater part of a firm's assets is financially supported by equity.
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