Debt ratio

(7-8 lines) To find the debt ratio, you divide total debt by total assets. The indicator is used in order to determine how much risk that company has acquired. The formula is:

Debt ratio = total debt / total assets

For more information, see Debt Ratio.

Data

The data originate from the web side Mendeley data and are a side-product of the research published by Stanišić et al. (2020). The data involve various primary and secondary data on the Serbian companies from the 2007-2015. They also include the data regarding the accontancy audits. The near explanation of the data presents the above given paper..(5-7 lines)…

Hypothesis

We expect that large companies guarantee more stability and that is why they can be offered with higher amount of the credits than the small ones.

Our aim is to provide some graphical analysis explaining this fact in the continuation of the document, we will provide more advanced statistics. (as it is Your first step in data processing, I recommend You to use exactly the same kind of the analysis, but with other indicatiors - next time, we will extend our space for the other analysis significantly)

Data processing and results

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For continuing the analysis, the database needs even more reconstruction. First of all, we need exclude variables we do not need for achieving our goals. Inspecting the paper of Stanišić et al. (2020) our more

The box interquartile ranges (boxes) overlay - it gives us the feeleing the debt ratio differences between both groups are not statisticaly signifficant - we can reject the hypothesis given above (a litte more of this discussion - at least 5 lines)

Stanišić, Nemanja et al. 2020. “Empirical Data on Financial and Audit Reports of Serbian Business Entities.” FINIZ 2020-People in the Focus of Process Automation, 193–98.