Debt-to-Asset Ratio Calculator
Find the percentage of assets financed by debt by dividing total liabilities by total assets and multiplying by 100.
Financial ratios are simplified indicators and may not capture all nuances.
Examples
- $200,000 liabilities & $500,000 assets ⇒ 40%
- $150,000 liabilities & $300,000 assets ⇒ 50%
FAQ
Is a lower ratio better?
Generally yes; lower ratios indicate less leverage.
Can the ratio exceed 100%?
Yes, if liabilities exceed assets.
Should I use book or market value?
Use consistent asset and liability valuations for comparison.
Additional Information
- Often used by lenders to gauge solvency.
- Complement with other ratios for full analysis.