Debt Ratio

Debt Ratio Calculator

Measures what percentage of a company’s assets are financed by debt

?Includes both short-term and long-term debt obligations
?All current and non-current assets

Leverage Analysis

0%
(Total Debt / Total Assets) × 100
Low Risk Moderate High Risk

Interpretation:

The debt ratio shows the proportion of assets financed by debt.

Industry Benchmarks:

  • Below 0.4 (40%): Conservative capital structure
  • 0.4-0.6 (40-60%): Typical range for many industries
  • Above 0.6 (60%): Highly leveraged (higher risk)