The formula to calculate the Debt to Assets Ratio is:
\[ \text{DA} = \frac{\text{TL}}{\text{TA}} \]
Where:
The Debt to Assets Ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business.
Let's assume the following values:
Using the formula:
\[ \text{DA} = \frac{45010}{100000} \]
Evaluating:
\[ \text{DA} = 0.4501 \]
The Debt to Assets Ratio is 0.4501.
Total Liabilities | Total Assets | Debt to Assets Ratio |
---|---|---|
40000 | 90000 | 0.444444444444 |
40000 | 95000 | 0.421052631579 |
40000 | 100000 | 0.400000000000 |
40000 | 105000 | 0.380952380952 |
40000 | 110000 | 0.363636363636 |
42500 | 90000 | 0.472222222222 |
42500 | 95000 | 0.447368421053 |
42500 | 100000 | 0.425000000000 |
42500 | 105000 | 0.404761904762 |
42500 | 110000 | 0.386363636364 |
45000 | 90000 | 0.500000000000 |
45000 | 95000 | 0.473684210526 |
45000 | 100000 | 0.450000000000 |
45000 | 105000 | 0.428571428571 |
45000 | 110000 | 0.409090909091 |
47500 | 90000 | 0.527777777778 |
47500 | 95000 | 0.500000000000 |
47500 | 100000 | 0.475000000000 |
47500 | 105000 | 0.452380952381 |
47500 | 110000 | 0.431818181818 |
50000 | 90000 | 0.555555555556 |
50000 | 95000 | 0.526315789474 |
50000 | 100000 | 0.500000000000 |
50000 | 105000 | 0.476190476190 |
50000 | 110000 | 0.454545454545 |