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Exercise

Compute current and debt-to-equity ratios

You just learned about liquidity ratios. In this exercise, you'll compute the current ratio, a liquidity ratio, to assess the company's assets to meet its short-term commitments. You'll also compute the debt-to-equity ratio, a commonly used leverage ratio, to see whether a company runs its operations using more debt or its "own" funds.

A pandas DataFrame balance_sheet has been loaded for you. pandas with alias pd has been loaded for you.

Instructions 1/2

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  • View the columns of balance_sheet and assess whether the columns needed to compute the current ratio and debt-to-equity ratios are present.