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Debt-to-asset ratio

It shows the percentage of assets financed by creditors.

Financiers often use the debt-to-asset ratio to see how assets are financed. Banks typically consider a lower ratio to be a good indicator of debt repayment success and the capacity to increase debt to support new opportunities. A high ratio indicates a substantial dependence on debt that could signal financial vulnerability.

How to calculate the debt-to-asset ratio:

Formula

Complete the fields below:

What is a Debt-to-Asset Ratio Calculator?

This online calculator helps business owners understand their commercial property finances. It shows how much is paid for with loans. The calculator uses a basic formula: total debt divided by total assets multiplied by 100.

For example, if you own a warehouse worth $1,000,000 CAD and have loans totalling $600,000 CAD, your debt-to-asset ratio would be 60%. This number helps banks and investors understand the financial status of your business or commercial property.

How To Use Debt-to-asset Ratio Calculator

Our calculator online makes the process simple:

  1. Enter your total debt: Mortgages, business loans, and other money owed
  2. Enter your property's current market value: The value of the property you own
  3. Press calculate to see your results

How to Interpret the Results

Your ratio results will help you understand your property's financial position:

Banks use these numbers to make lending decisions. A lower ratio often leads to better loan terms and more financing options.

Use this calculator online, which works for all commercial properties - from retail stores to warehouses. Try it now to make smarter investment decisions in Canadian commercial real estate quickly.

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