Formulas 2019 to 2020 2020-2021

Debt to asset 30,848,101+192,245,301/414,103,214 29,618,901+187,302,190/406,867,740

Ratio: =0.538*100=53.8% =0.533*100=53.8%
= Total
Debt / Total
Assets
Debt to 30,848,101+192,245,301/191,009,812 29,618,901+187,302,190/189,946,649
equity ratio: =1.167 =1.142
= Total
debt / Total
shareholder’s
equity

Debt-to-asset ratio:

The debt-to-asset ratio, often known as the debt ratio, is a leverage ratio that shows how much of
an asset's value is financed by debt. The larger the ratio, the more leverage and financial risk
there is. The Anlima Yarn Dyeing Limited ' debt to total asset ratio in 2020 is 53.8 percent, as
shown in the table. A debt-to-asset ratio of 40 percent is deemed good. A higher debt-to-asset
ratio indicates a higher chance of default. A ratio of more than 0.6 is generally considered to be
poor, as it indicates that the company may not be generating enough cash flow to cover its debt.
We can also observe that their debt-to-asset ratio is the same to 2021 is 53.8 percentage .
However, it is still more than 50%. This is a poor sign for this company because they are still
heavily leveraged and risky.