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Debt Ratio Formula

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Debt Ratio is a financial ratio that measures the extent of a company’s or consumer’s leverage. Check FAQs

DR = \frac{TD}{TA}

DR - Debt Ratio?TD - Total Debt?TA - Total Assets?

Debt Ratio Example

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Here is how the Debt Ratio equation looks like with Values.

Here is how the Debt Ratio equation looks like with Units.

Here is how the Debt Ratio equation looks like.

25000 = \frac{2.5E+9}{100000}

25000 = \frac{2.5E+9}{100000}

25000 = \frac{2.5E+9}{100000}

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Important Formulas of Mortgage and Real Estate » fx Debt Ratio

Debt Ratio Solution

Follow our step by step solution on how to calculate Debt Ratio?

FIRST Step Consider the formula

DR = \frac{TD}{TA}

Next Step Substitute values of Variables

∴

DR = \frac{2.5E+9}{100000}

Next Step Prepare to Evaluate

∴

DR = \frac{2.5E+9}{100000}

LAST Step Evaluate

∴

DR = 25000

Debt Ratio Formula Elements

Variables

Debt Ratio

Debt Ratio is a financial ratio that measures the extent of a company’s or consumer’s leverage.

Symbol: DR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Debt Ratio

Total Debt

Total Debt is the net debt of a company minus cash on hand.

Symbol: TD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find 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.

Symbol: TA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Assets

Other formulas in Important Formulas of Mortgage and Real Estate category

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Go Rental Yield

RY = (\frac{ARI}{PV}) \cdot 100

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P sqf = \frac{PSP}{T sqf}

Go Floor Area Ratio

FAR = \frac{GFA}{TLS}

How to Evaluate Debt Ratio?

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

How to evaluate Debt Ratio using this online evaluator? To use this online evaluator for Debt Ratio, enter Total Debt (TD) & Total Assets (TA) and hit the calculate button.

FAQs on Debt Ratio

What is the formula to find Debt Ratio?

The formula of Debt Ratio is expressed as Debt Ratio = Total Debt/Total Assets. Here is an example- 25000 = 2500000000/100000.

How to calculate Debt Ratio?

With Total Debt (TD) & Total Assets (TA) we can find Debt Ratio using the formula - Debt Ratio = Total Debt/Total Assets.

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Debt Ratio Formula

Debt Ratio Example

Debt Ratio Solution

Debt Ratio Formula Elements

Other formulas in Important Formulas of Mortgage and Real Estate category

How to Evaluate Debt Ratio?

FAQs on Debt Ratio

Variable Name