Debt to Asset Ratio

Calculate Debt to Asset Ratio

Total Debt ($)

Include all liabilities

Total Assets ($)

Include all company assets

Analysis Results

Debt to Asset Ratio

As decimal

Percentage

Of assets financed by debt

Equity Ratio

Of assets financed by equity

Financial Structure Breakdown

Total Debt:

Total Assets:

Implied Equity:

Debt Coverage:

Industry Benchmarks

Conservative (Low Risk)

0.0 - 0.3

30% or less debt financing

Utilities, consumer staples

Moderate (Medium Risk)

0.3 - 0.6

30-60% debt financing

Manufacturing, retail

Aggressive (High Risk)

0.6+

60%+ debt financing

Airlines, real estate

How Debt to Asset Ratio Works

Formula

Debt to Asset Ratio = Total Debt ÷ Total Assets

This ratio shows what proportion of a company's assets are financed through debt.

What It Measures

Financial leverage and risk
Debt management efficiency
Capital structure analysis
Creditworthiness assessment

Key Insights

Lower ratios indicate lower financial risk
Higher ratios may limit borrowing capacity
Industry context is crucial for interpretation
Trend analysis is more valuable than single point

Example Calculation

Company ABC:

Total Debt: $500,000

Total Assets: $1,000,000

Debt to Asset Ratio: $500,000 ÷ $1,000,000 = 0.50 or 50%

This means 50% of the company's assets are financed through debt.