Python program to input total debt and total assets and calculate total debt to total assets ratio and check whether major funded by assets or equity

Write a program to input total debt and total assets and calculate total-debt-to-total-assets ratio (TD/TA) as Total Debt/Total Assets. Then print if the major portion of the debt is funded by assets (when TD/TA > 1) or greater portion of assets is funded by equity (when TD/TA < 1).

Solution

total_debt  = float(input("Enter total debt  : "))
total_assets  = float(input("Enter total assets  : "))
ratio = total_debt / total_assets
if ratio > 1 :
    print("the major portion of the debt is funded by assets ")
else :
    print("greater portion of assets is funded by equity ")

Output

Enter total debt : 4000

Enter total assets : 2000

the major portion of the debt is funded by assets

>>>

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Enter total debt : 5000

Enter total assets : 12000

greater portion of assets is funded by equity

Programming Examples

Python program to input total debt and total assets and calculate total debt to total assets ratio and check whether major funded by assets or equity