Balance Sheet of XYZ Ltd.
(As of 31st March 2020 )

EQUITY AND LIABILITIES
;1. Shareholder's Funds
a. Share Capital 40,000
b. Reserves and Surplus 10,000
2. Non-Current Liabilities
a. Long term Loan (Debentures) 1,00,000
3. Current Liabilities
a. Short term Borrowings 25,000
b. Trade Payables 30,000
TOTAL 2,05,000

ASSETS
1. NON CURRENT ASSETS
Fixed Assets 95,000
2. CURRENT ASSETS
a. Inventories 25,000
b. Trade Receivables 45,000
c. Cash & Cash Equivalents 10,000
d. Prepaid Expenses 30,000
TOTAL 2,05,000

From the above Balance Sheet calculate Total Asset to Debt Ratio.

2.05:1

Debt = Long term Loan (Debentures) of  ₹1,00,000
Total assets = 205000
Total Asset to Debt Ratio = Total Assets / Debt
                                        = 205000/100000
                                        = 2.05: 1