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.
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.
Our calculator online makes the process simple:
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.