Both figures can be obtained from the balance sheet. Now, since total assets come from two sources -- debt and equity, the portion that is not funded by equity is naturally the portion funded by debt. …

Nov 27, 2023 · To find a business' debt ratio, divide the total debts of the business by the total assets of the business. Check out the debt ratio equation: A low debt ratio, typically less than 0.5 or 50%, …

Oct 29, 2024 · Find a company's debt ratio by dividing its total debt by total assets. Learn why it matters, what makes a good debt ratio, and manage debt effectively.

Debt Ratio= Total Debt / Total Assets. When the total debt is more than the total number of assets, it depicts that the company has more liabilities than assets.

Jun 17, 2024 · Debt ratio measures the proportion of a company's total assets that are financed by debt. Learn how to calculate debt ratio with its examples & interpretation.

Jul 24, 2025 · Debt ratio is expressed as a decimal or percentage. The formula for debt ratio is: Debt ratio = Total debt / Total assets. Total liabilities are the total debt and financial obligations payable by …

So, total debt = $100,000, and total assets = $300,000. This means that XYZ Corp. has a debt ratio of 0.333 ($100,000 / $300,000). When looking at this ratio, it is important to keep in mind capital …

Aug 1, 2025 · Calculate several values relating to the debt of a business. Find debt ratio, debt/equity ratio, and times interest earned ratio. Free online business and financial ratio calculators.

The debt ratio is calculated by dividing total liabilities by total assets. Both of these numbers can easily be found the balance sheet. Here is the calculation: Make sure you use the total liabilities and the …

Jul 8, 2025 · To make things easier, a debt ratio calculator can do the math for you – instantly providing clarity on where you stand. What is the Debt Ratio? The debt ratio is a financial metric that compares …