Total Debt To Total Assets

What Does Total Debt To Total Assets Mean?
A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding short-term and long-term debt and then dividing by the company's total assets.

Investopedia explains Total Debt To Total Assets
This is a very broad ratio as it includes short- and long-term debt as well as all types of both tangible and intangible assets.

Related Terms

Assets
Balance Sheet
Current Assets
Current Liabilities
Debt
Tangible Asset
More Related Terms

Related Links

Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
Debt Reckoning - Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money!
When Companies Borrow Money - Here we explain how to evaluate whether a company's debt will pose a threat to investors.

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