75 :- Calculate Debt to Capital Employed Ratio from the following information :
Total Debts Rs 60,00,000; Current Assets Rs 25,00,000; Non – Current Assets Rs 95,00,000; Working Capital Rs 5,00,000.
Solution :-
Working Capital = Current Assets – Current Liabilities
5,00,000 = 25,00,000 – Current Liabilities
Current Liabilities = Rs 20,00,000
Long term Debts = Total Debts – Current Liabilities
= 60,00,000 – 20,00,000
= Rs 40,00,000
Capital Employed = Current Assets + Non – Current Assets – Current Liabilities
= 25,00,000 + 95,00,000 – 20,00,000
= Rs 100,00,000
Debt to Capital Employed Ratio = Debt/Capital Employed
= 40,00,000/100,00,000
= 0.4 : 1