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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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