6 Other formulas that you can solve using the same Inputs

Return on capital employed
Return on capital employed=(Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100 GO
Equity Multiplier
Equity Multiplier =Total Assets/Total Shareholders' Equity GO
Shareholders' Equity when Total Assets and Liabilities are given
Total Shareholders' Equity=Total Assets-Total Liabilities GO
Debt to Assets Ratio
Debt to Assets Ratio=Total Liabilities/Total Assets GO
Solvency Ratio
Solvency Ratio=(Shareholders Fund*100)/Total Assets GO
Total Asset Turnover
Total Asset Turnover=Sales/Total Assets GO

Debt Ratio Formula

Debt Ratio=Total Debt/Total Assets
More formulas
Monthly Mortgage Payment GO

What is Debt Ratio?

Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. Total liabilities divided by total assets or the debt/asset ratio shows the proportion of a company's assets which are financed through debt. If the ratio is less than 0.5, most of the company's assets are financed through equity. If the ratio is greater than 0.5, most of the company's assets are financed through debt. Companies with high debt/asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the firm's operation.

How to Calculate Debt Ratio?

Debt Ratio calculator uses Debt Ratio=Total Debt/Total Assets to calculate the Debt Ratio, Debt Ratio is a financial ratio that measures the extent of a company’s or consumer’s leverage. Debt Ratio and is denoted by DR symbol.

How to calculate Debt Ratio using this online calculator? To use this online calculator for Debt Ratio, enter Total Assets (TA) and Total Debt (TD) and hit the calculate button. Here is how the Debt Ratio calculation can be explained with given input values -> 25000 = 2500000000/100000.

FAQ

What is Debt Ratio?
Debt Ratio is a financial ratio that measures the extent of a company’s or consumer’s leverage and is represented as DR=TD/TA or Debt Ratio=Total Debt/Total Assets. Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet and Total Debt is the net debt of a company minus cash on hand.
How to calculate Debt Ratio?
Debt Ratio is a financial ratio that measures the extent of a company’s or consumer’s leverage is calculated using Debt Ratio=Total Debt/Total Assets. To calculate Debt Ratio, you need Total Assets (TA) and Total Debt (TD). With our tool, you need to enter the respective value for Total Assets and Total Debt and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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