2019 NIGA CERTIFICATION COURSE
FINANCIAL HEALTH (Solvency)
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Debt Ratio
TOTAL Debt TOTAL Assets
Debt to Assets =
**DTA > 1 = Indicates liabilities are greater than assets and the risk of default, i.e. the inability to pay debts with assets.
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WHAT DO THE RESULTS TELL YOU?
(c) 2019 - N WADDELL, CPA, CGMA, PROFESSIONAL CORP.
ADEQUATE WORKING CAPITAL POTENTIAL INABILITY TO QUICKLY PAY SHORT TERM OBLIGATIONS OVER LEVERAGED
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(c) 2019 - N WADDELL, CPA, CGMA, PROFESSIONAL CORP.
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