DEBT TO ASSET RATIO

The debt to asset ratio measures the percentage of the company’s total assets that are
financed with debt (total liabilities).this ratio basically looks at what debt the company
owes ,and compares that debt to what assets the company owns.
Debt to Asset Ratio Formula :
Debt to asset ratio = Total liabilities
Total assets
The following table depicts the Debt to asset ratio of MGM solutions from the year
Table no. 4.4
Table showing Debt to asset ratio
Years Total liabilities Total assets Ratio

2015-2016 776.08 1719.11 0.45

2016-2017 838.62 1868.61 0.44

2017-2018 1047.94 1784.83 0.58

2018-2019 1149.47 1884.46 0.60

Analysis:

Debt to asset ratio of the firm in the year 2015-2016 is 0.45 and it has decreased in the
year 2016-17 is 0.44 and it has increased in the year 2017 -18 and 2018-19