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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

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