% of assets financed by debt. The Debt-to-Asset Ratio Calculator takes total debt (short + long term), total assets and returns debt to assets plus as a ratio, assets financed by equity. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Debt-to-Asset Ratio Calculator works
Shows what share of everything the business owns was paid for with borrowed money. Lenders get nervous above 60%; under 30% is conservative.
Worked example
With the example values (total debt (short + long term) of $400,000, total assets of $1,000,000), the debt to assets is 40%; as a ratio 0.40x, assets financed by equity 60%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is debt to assets calculated?
debt to assets = total debt ÷ total assets.
Which figures do I need?
Total debt (short + long term), total assets. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
