Debt / Asset Ratio



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The debt/asset ratio is calculated by dividing total liabilities by total assets,If the ratio is smaller than one, most of the company's assets are financed through equity. If the ratio is more than one, most of the company's assets are financed through debt,

Total Liabilities
= ------------------
Total Assets

The lower the Debt to Asset Ratio, the better, as companies with high amounts of debt introduce more risk,

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