Debt Ratio = Total Debt ÷ Total Assets
Identify total debt
Identify total assets
Divide total debt by total assets
Express the result as a decimal or percentage
Debt Ratio = 0.40 means 40% of assets are financed by debt
Debt Ratio = Total Debt ÷ Total Assets
Identify total debt
Identify total assets
Divide total debt by total assets
Express the result as a decimal or percentage
Debt Ratio = 0.40 means 40% of assets are financed by debt