Accounting : Ratio
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Debit Ratio - Equation
A higher ratio indicates that there is a greater probability that a company will not be able to pay its debt in the future. *Evaluates the level of debt risk.
Return on Assets
net income/average total assets Return on assets (ROA) is stated in ratio form as net income divided by the average total assets invested.
Debit Ratio
total liabilities/total assets
