Investor's wiki

Total-Debt-to-Total-Assets Ratio

Total-Debt-to-Total-Assets Ratio

Total Debt to Total Assets alludes to a ratio that gives investors and analysts a snapshot of the extent of money owed to substantial (or immaterial) resources. Thusly, it is a leverage ratio, or a financial measurement of a company's ability to meet financial obligations and an image of how much financial risk a company has taken on.

Features

  • The total-debt-to-total-assets ratio shows the degree to which a company has utilized debt to finance its assets.
  • The calculation thinks about the company's all's debt, not just loans and bonds payable, and thinks about all assets, including intangibles.
  • On the off chance that a company has a total-debt-to-total-assets ratio of 0.4, 40% of its assets are financed by creditors, and 60% are financed by proprietors' (shareholders') equity.