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The debt ratio measures what proportion of a company's assets are financed by debt. Debt ratio = Total liabilities / Total assets. A ratio above 0.5 means more than half the assets are debt-financed.

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Get total liabilities (all short-term and long-term debt)
  2. 2Get total assets from the balance sheet
  3. 3Debt ratio = Total liabilities / Total assets
  4. 4Debt-to-equity ratio = Total debt / Shareholders' equity (a related metric)

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
Liabilities £600k · Assets £1M
ଫଳ
Debt ratio = 0.6 (60%)
60 cents of debt per £1 of assets

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