Debt Ratio Calculator
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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.
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Did You Know?
Capital-intensive industries like airlines and utilities comfortably operate at debt ratios of 0.7–0.8 because their asset base (planes, power plants) is large and stable.
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