Write a program to calculate Debt-to-equity (D/E) ratio as [ Total Liabilities  / Total shareholders' ] equity after inputting total liabilities and total shareholders' equity. And then print if an investor should invest in the company or not. A D/E ratio greater than 2.0 indicates a risky scenario for an investor.

"> PYTHON PROGRAM TO CALCULATE DEBT TO EQUITY CHECK WHETHER IT IS RISKY SCENARIO FOR INVESTOR OR NOT

O Level Exam

Programming Example

Write a program to calculate Debt-to-equity (D/E) ratio as [ Total Liabilities  / Total shareholders' ] equity after inputting total liabilities and total shareholders' equity. And then print if an investor should invest in the company or not. A D/E ratio greater than 2.0 indicates a risky scenario for an investor.

Solution

total_Liabilities   = float(input("Enter Total Liabilities   : "))
Total_equity  = float(input("Enter Total shareholders' equity  : "))
ratio = total_Liabilities  / Total_equity
if ratio > 2 :
print("a risky scenario for an investor")
else :
print("investor should invest in the company ")
Output

Enter Total Liabilities   :4000

Enter Total shareholders' equity  :5000

investor should invest in the company

>>>

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Enter Total Liabilities   :60000

Enter Total shareholders' equity  :2000

a risky scenario for an investor