Debt To Asset Ratio Calculator

Calculate debt-to-asset ratio for businesses, inputting long-term and short-term debt, total assets.

Debt To Asset Ratio Formula

$17900 / $5900 * 100.0 = 303.39%.John Smith has a debt to asset ratio of 303.39%. This result number indicates that for every dollar of assets John Smith has, he owes approximately $3.03 in total debt.

Total Debt Formula

$17000 + $10900 = $27900.John's total debt is $27900, which is the sum of his long-term debt ($17000) and short-term debt ($10900).

Meaning

The Debt To Asset Ratio is a financial metric that measures an organization's level of indebtedness relative to its total assets. It represents the proportion of assets financed through debt versus equity or other means. A lower Debt To Asset Ratio indicates a higher proportion of asset finance, while a higher Debt To Asset Ratio suggests a greater reliance on debt financing. The ratio can be used to assess an organization's financial health, risk profile, and ability to meet long-term obligations.