Total Debt to Total Assets (redirected from debt to assets ratio)

Total Debt to Total Assets

A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding short-term and long-term debt, and then dividing by the company's total assets.

Notes:

This is a very broad ratio as it includes short- and long-term debt as well as all types of assets whether tangible or not.

See also: Assets, Balance Sheet, Current Assets, Current Liabilities, Debt, Tangible Asset