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The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude:
The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude: Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes. Billy's Catering has a lower risk from its financial leverage. Jackson's Shoes has a higher risk from its financial leverage. Billy's Catering has the exact same dollar amount of total liabilities and total assets. Jackson's Shoes has less equity per dollar of assets than Billy's Catering.
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