Total Debt to Total Assets

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Total Debt to Total Assets

A measure of a company's risk. It is taken by adding its short-term debt to its long-term debt and dividing the quantity by its total value of its assets. A ratio over 1 indicates that the value of the company's debt exceeds that of its assets while a ratio below 1 indicates the opposite. Generally speaking, a low total debt to total assets ratio is thought to be desirable.