Who is Stronger and why?
Equity / Assets PC 55% of assets financed with equity
EB 63% of assets financed with equity
HGC 37% of assets financed with equity
Or another way to look at it…
Debt/Assets PC 45% of assets financed with debt
EB 37% of assets financed with debt
HGC 63% of assets financed with debt
Here we have been provided with the two ratio of the three company Equity / Asset and Debt/Assets
WE can cee that ,
In PC, Equity / Assets is 55% of assets financed with equity and it is strong company because here more then half of assets is finance through equity holders and only 45% of assets financed with debt
EB 63% of assets financed with equity and it is strong company becuse here more then half of assets is finance through equity holders and only 37% of assets financed with debt
In HGC ,37% of assets financed with equity and it is weak company because here most of the assets is finance through debt and only 37% of assets financed with equity
