We will solve this problem in terms of millions.
The bakery's total assets is 465 million. The total liabilties are 130 million. Plug these values into the debt ratio equation:
We can simplify this fraction by dividing both the numerator and denominator by 5:
We cannot simplify this fraction any further, as the only common factor between 26 and 93 is 1.
If you want the debt ratio as a percentage, then divide the numerator by the denominator:
Multiply the decimal by 100 to convert into a percentage:
The debt ratio is 26/93, or 27.96%.