The question asks to calculate ratio of liabilities to total capital.
and then calculates it as liabilities/assets.
I thought capital = Assets - liabilities.
Am I missing something?
Thanks,
The question asks to calculate ratio of liabilities to total capital.
and then calculates it as liabilities/assets.
I thought capital = Assets - liabilities.
Am I missing something?
Thanks,
ok this is what i understand after doing some research.
Working Capital = Current Assets - Current Liabilities (including payables and DTL and any current liabilities)
on the other hand
Capital = equity + debt (so wouldn’t include payables and DTL and other type of liabilities)
Is that correct?
thanks