Fixed Assets to Long-term Liabilities Ratio

Learn how to calculate ratio of fixed assets to long term liabilities ratio with the following example:
GCE Ltd has the following data:
Land $100,000
Buildings $300,000
Computers $5,000
Motor vehicles $30,000
Furnitures $12,000
Equipment $18,000
Fixtures and fittings $20,000
Machinery $25,000
Debentures $305,000
Mortgage loans $35,000

Solution:
Fixed Assets = Land + Buildings + Computers + Motor vehicles + Furnitures + Equipment + Fixtures and fittings + Machinery = 100,000 + 300,000 + 5,000 + 30,000 + 12,000 + 18,000 + 20,000 + 25,000 = $510,000
Long-term Liabilities = Debentures + Mortgage loans = 305,000 + 35,000 = $340,000

Formula:
Fixed Assets to Long-term Liabilities Ratio = Fixed Assets / Long-term Liabilities = 510,000 / 340,000 = 1.5:1