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Debt to Assets Ratio Formula

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The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business. Check FAQs

DA = \frac{TL}{TA}

DA - Debt to Assets Ratio?TL - Total Liabilities?TA - Total Assets?

Debt to Assets Ratio Example

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

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

Here is how the Debt to Assets Ratio equation looks like.

0.4501 = \frac{45010}{100000}

0.4501 = \frac{45010}{100000}

0.4501 = \frac{45010}{100000}

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Debt to Assets Ratio Solution

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

FIRST Step Consider the formula

DA = \frac{TL}{TA}

Next Step Substitute values of Variables

∴

DA = \frac{45010}{100000}

Next Step Prepare to Evaluate

∴

DA = \frac{45010}{100000}

LAST Step Evaluate

∴

DA = 0.4501

Debt to Assets Ratio Formula Elements

Variables

Debt to Assets Ratio

The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business.

Symbol: DA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Debt to Assets Ratio

Total Liabilities

Total Liabilities are the company debts or obligations that are due within one year.

Symbol: TL

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Liabilities

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 Debt Ratio category

Go Free Cash Flow

FCF = CFO - CAPEX

Go Free Cash Flow to Firm

FCFF = CFO + (Int \cdot (1 - tax)) - CAPEX

Go Debt to Equity Ratio

R D/E = \frac{TL}{TSE} \cdot 100

Go Business Current Ratio

CR = \frac{CA}{CL}

How to Evaluate Debt to Assets Ratio?

Debt to Assets Ratio evaluator uses Debt to Assets Ratio = Total Liabilities/Total Assets to evaluate the Debt to Assets Ratio, The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business. Debt to Assets Ratio is denoted by DA symbol.

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

FAQs on Debt to Assets Ratio

What is the formula to find Debt to Assets Ratio?

The formula of Debt to Assets Ratio is expressed as Debt to Assets Ratio = Total Liabilities/Total Assets. Here is an example- 0.4501 = 45010/100000.

How to calculate Debt to Assets Ratio?

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

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Debt to Assets Ratio Formula

Debt to Assets Ratio Example

Debt to Assets Ratio Solution

Debt to Assets Ratio Formula Elements

Other formulas in Debt Ratio category

How to Evaluate Debt to Assets Ratio?

FAQs on Debt to Assets Ratio

Variable Name