The debt ratio or debt to assets ratio is a financial ratio which indicates the percentage of a company's assets which are funded by debt. It is measured as the ratio of total debt to total assets, which is also equal to the ratio of total liabilities and total assets: Debt ratio = Total Debts/Total Assets = Total Liabilities/Total Assets Financial analysts and financial managers use the ratio in assessing the financial position of the firm.
The debt ratio or debt to assets ratio is a financial ratio which indicates the percentage of a company's assets which are funded by debt. It is measured as the ratio of total debt to total assets, which is also equal to the ratio of total liabilities and total assets: Debt ratio = Total Debts/Total Assets = Total Liabilities/Total Assets Financial analysts and financial managers use the ratio in assessing the financial position of the firm.
Source: Wikipedia "Debt ratio" · CC BY-SA 4.0
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