Debt to Assets Ratio Formula: Debts To Assets Ratio = Total Debt / Total Assets
Debt to Assets Ratio Definition The Debt to Assets Ratio Calculator instantly calculates the debt to assets ratio of a company. Enter in the total amount of debt and the total amount of assets and then click the calculate button to calculate the debt to assets ratio. When trying to interpret what the debt to assets ratio means it is best to keep in mind that if a company has a debt to asset ratio of more than 1 than they have the majority of their financing through debt rather than equity (and could potentially be considered a highly leveraged company) while a firm that has a debt to assets ratio of less than 1 has the majority of their financing through equity or some other means instead of debt. The Debt to Assets Ratio Calculator is very similar to the Debt to Equity Ratio Calculator.
How to Calculate Debt to Assets Ratio Let's be honest - sometimes the best debt to assets ratio calculator is the one that is easy to use and doesn't require us to even know what the debt to assets ratio formula is in the first place! But if you want to know the exact formula for calculating debt to assets ratio then please check out the "Formula" box above.