Both figures can be obtained from the balance sheet. Now, since total assets come from two sources -- debt and equity, the portion that is not funded by equity is naturally the portion …

Nov 27, 2023 · To find a business' debt ratio, divide the total debts of the business by the total assets of the business. Check out the debt ratio equation: A low debt ratio, typically less than …

May 7, 2025 · Some sources consider the debt ratio to be total liabilities divided by total assets. A debt ratio below 20% is considered excellent by most lenders. As noted above, a company's …

Jun 17, 2024 · Debt ratio measures the proportion of a company's total assets that are financed by debt. Learn how to calculate debt ratio with its examples & interpretation.

Debt Ratio= Total Debt / Total Assets. When the total debt is more than the total number of assets, it depicts that the company has more liabilities than assets.

Oct 29, 2024 · Find a company's debt ratio by dividing its total debt by total assets. Learn why it matters, what makes a good debt ratio, and manage debt effectively.

Dec 5, 2025 · Learn the debt ratio formula, how to calculate it, and what different values mean for financial risk. Complete guide with examples.

Jul 24, 2025 · A company's debt ratio can be calculated by dividing total debt by total assets. A debt ratio that’s less than 1 or 100% is considered ideal, while a debt ratio that’s greater than 1 …

Learn what a debt ratio is, how to calculate debt to income ratio, debt to equity ratio, and more. Use our guide to understand ratios.

Jul 8, 2025 · To make things easier, a debt ratio calculator can do the math for you – instantly providing clarity on where you stand. What is the Debt Ratio? The debt ratio is a financial …