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 …

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.

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 …

Dec 12, 2025 · Learn the debt ratio formula, how to calculate it, and what different values mean for financial risk. Complete guide with examples.

Dec 19, 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 …

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.

Apr 24, 2025 · Debt Ratio = Total Debt / Total Assets. A debt ratio above 1 (or 100%) indicates that a company has more debt than assets, suggesting higher financial risk. Conversely, a …

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 …

So, total debt = $100,000, and total assets = $300,000. This means that XYZ Corp. has a debt ratio of 0.333 ($100,000 / $300,000). When looking at this ratio, it is important to keep in mind …