Debt to Assets Ratio Calculator
This calculator helps you assess the proportion of a company's assets that are financed through debt. The Debt to Assets Ratio is a key financial metric that indicates long-term solvency and financial risk, useful for investors, lenders, and analysts.
Evaluate Financial Solvency with Debt to Assets Ratio
Debt to Assets Ratio Formula
Where:
- Total Liabilities – all debts and obligations a company owes
- Total Assets – the sum of everything the company owns (including cash, property, inventory, etc.)
This ratio shows the percentage of assets funded by debt rather than equity.
The Debt to Assets Ratio is widely used to measure a company’s financial leverage and long-term solvency. A ratio below 0.5 usually indicates that most of the company’s assets are financed through equity, while a higher ratio signals more debt dependence. This tool is especially helpful when analyzing balance sheets, evaluating credit risk, or benchmarking companies within an industry.