Question

BHP Group Ltd.- 2019 and 2020 Partial Balance Sheet

Assets
Liabilities & Owner's Equity
2019
2020
2019
$2958
$7648 Current liabilities
$1512
$8149 $10464 Long-term debt
Total Equity
$3486
(Total assets - total liabilities)
2020
$3982
$1705
(Total assets - total liabilities)
BHP Group Ltd.- 2020 Income Statement
Sales
Cost of goods sold
Depreciation
Interest paid
Taxes
$11760
$5339
$2835
$1857
$1020
Calculate the Total debt ratio of BHP Group Ltd. for the financial year 2020.

Answer 1

financial year 2020 is 1.36

Step-by-step explanation:

To calculate the total debt ratio of BHP Group Ltd. for the financial year 2020, we need to divide the total debt by the total assets.

Total debt ratio = Total debt / Total assets

Total debt ratio (2020) = $10464 / $7648 = 1.36

Therefore, the total debt ratio of BHP Group Ltd. for the financial year 2020 is 1.36

A total debt ratio of 1.36 means that BHP Group Ltd. has a moderate level of debt.