ACN-305-4 - SL no 1 2 3 Ratios Formula Summit Power Limited(in millions Result Shajibazer Power Co Ltd Result comment Debt to asset ratio Total

ACN-305-4 - SL no 1 2 3 Ratios Formula Summit Power...

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SL no Ratios Formula Summit Power Limited(in millions) Result Shajibazer Power Co. Ltd Result comment 1. Debt to asset ratio Total debt / total assets Total debt= 27446083165 Total Assets=64345625029 0.43 Total debt 4383000625 Total assets 9969068794 0.44 Both companies are in a similar situation means both the companies are in financial risk. 2. Long term debt to asset ratio Long term debt/total asset Long term debt=6429873396 Total Assets= 64345625029 0.10 Long term debt 192115541 Total Assets 9969068794 0.0193 Summit Power Ltd. has a high long term debt to asset ratio, it suggests that the business has relatively high degree of risk, and eventually, it may not be able to repay its debts. 3. Debt to equity ratio Total liabilities/T otal shareholde rs' equity Total liabilities= 27446083165 Total shareholders' equity= 36899541864 0.74 Total liabilities 4383000625 Total shareholders' equity 5586068167 0.784 A higher debt to equity ratio indicates that more creditor financing (bank loans) is used than investor financing (shareholders).

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