Python program to calculate debt to equity check whether it is risky scenario for investor or not

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

Programming Examples

Python program to calculate debt to equity check whether it is risky scenario for investor or not