Answer:
Their debt ratio is about 0.039.
Explanation:
Given information:
liabilities = $16700
Assets = $433,000
We need to find their debt ratio.
[tex]\text{Debt ratio} = \dfrac{Liabilities}{Assets}[/tex]
Substitute the given values in the above formula.
[tex]\text{Debt ratio} = \dfrac{16700}{433000}[/tex]
[tex]\text{Debt ratio} = \dfrac{167}{4330}[/tex]
[tex]\text{Debt ratio} \approx 0.038568[/tex]
[tex]\text{Debt ratio} \approx 0.039[/tex]
Therefore, their debt ratio is about 0.039.
