XYZ Enterprises recently completed an analysis of their balance sheet as of December 31, 2023. The company has the following recorded values: Total Current Assets: $300,000 Total Non-Current Assets: $700,000 Total Current Liabilities: $150,000 Total Non-Current Liabilities: $350,000 Using this information, the analysts are particularly interested in determining the company's debt to equity ratio. Given that the total equity can be derived from the accounting equation (Assets = Liabilities + Equity), calculate the debt to equity ratio. What is the result of this calculation?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculating Debt to Equity Ratio from Balance Sheet

Very Hard Financial Statements Balance Sheet

XYZ Enterprises recently completed an analysis of their balance sheet as of December 31, 2023. The company has the following recorded values:

Total Current Assets: $300,000
Total Non-Current Assets: $700,000
Total Current Liabilities: $150,000
Total Non-Current Liabilities: $350,000

Using this information, the analysts are particularly interested in determining the company's debt to equity ratio. Given that the total equity can be derived from the accounting equation (Assets = Liabilities + Equity), calculate the debt to equity ratio. What is the result of this calculation?

0.5

1.0

1.5

Hint

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