After reading the materials for this module, conduct additional research as necessary within the Saudi Digital Library.
Consider a healthcare organization in Saudi Arabia and assume they have a debt to equity ratio of 1.3.
Address the following requirements:
Is this good performance on this ratio?
Discuss which actions would improve (i.e., increase) this ratio.
Discuss some of the problems encountered when performing financial statements and operating indicator analysis.
Answer & Explanation
There is no one-size-fits-all answer to this question. Each organization’s situation is unique, and the best way to improve a debt to equity r
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Step-by-step explanation
atio may vary depending on the specific circumstances. However, some possible actions that could improve a debt to equity ratio include:
-Reducing outstanding debt
-Increasing equity through investment or profits
-Improving financial statement accuracy
-Increasing operating efficiency