What is debt-to-asset ratio?

Debt-to-asset ratio equals total liabilities divided by total assets. It is a basic indicator of leverage and solvency pressure.

Quick Definition

Debt-to-asset ratio = Total Liabilities ÷ Total Assets. A ratio above 70% often signals high leverage and elevated financial risk. Compare within the same industry for meaningful insight.

Use this concept with tools

DCA

Periodic investing with expected annual return.

Fee Drag

Impact of ongoing fees on final value.

ROI + Annualized

Calculate total ROI and annualized return.

NPV

Discounted cashflow valuation.

Related concepts

What does a balance sheet tell me?

A balance sheet is a snapshot: Assets = Liabilities + Shareholders' Equity. Use it to assess leverage (how much debt?), liquidity (can it pay bills?), and capital structure.

How are the three statements connected?

Net income (Income Statement) flows into retained earnings on the Balance Sheet. The Cash Flow Statement bridges the two, explaining why cash changed. Inconsistencies between statements can signal accounting issues.