MBATricks

Tips and Tricks about my MBA experience

Finance :: Leverage Ratio :: Debt-to-Assets

 

The Debt-to-Assets Ratio helps to understand if a company can reimburse its debts with its assets.

 

Debt-to-Assets = Total Liabilities /Total Assets

 

The lower ratio the better as it means that the company can reimburse its debts with its assets.

 

The Total Liabilities and the Total Assets can be taken from the company’s Balance Sheet.

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