Debt-to-Asset Ratio Calculator
Find the percentage of assets financed by debt by dividing total liabilities by total assets and multiplying by 100.
CalcSimpler 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.
CalcSimpler