Interpretation

Hi sir, would you please answer my question? Statement of financial position at 31 July 20X4 20X4 20X3 $000 $000 Non-current assets Property, plant and equipment 559,590 341,400 Current assets Inventory 109,400 88,760 Receivables 419,455 206,550 Bank 95,400 ––––––––– ––––––––– 1,088,445 732,110 ––––––––– ––––––––– Equity and reserves $1 ordinary shares 140,000 100,000 Share premium 40,000 20,000 Revaluation reserve 10,000 Retained earnings 406,165 287,420 ––––––––– ––––––––– 596,165 407,420 Non-current liabilities 10% Bank loan 20X7 61,600 83,100 Current liabilities Payables 345,480 179,590 Bank overdraft 30,200 Taxation 55,000 62,000 ––––––––– ––––––––– 1,088,445 732,110 State the definition and calculate the debt-equity ratio for the year ended 31 July 20X4, together with the comparative for the earlier year. The answer in kaplan revision kit: Debt-equity ratio: (Long-term loans/Shareholders’ funds) × 100) 20X4 ((61,600/596,165) × 100) = 10.33% 20X3 ((83,100/407,420) × 100) = 20.40% But i dont understand it, is not debt ratio formula should be like Total debt/ Total asset? Thanks in advance!