Total Debt to Total Assets Ratio Calculator

The total debt-to-total asset ratio is a metric to assess what percentage of assets are financed by borrowed funds. It is one of the leverage ratios utilized by lenders, creditors, investors, financial analysts, etc. It evaluates the position of the company on the scale where the benefit of financial leverage is on one side and the risk of bankruptcy on the other side.

The formula to calculate the total debt-to-total asset ratio is as follows:

Total Debt to Total Asset to Ratio = (Short Term Debts + Long Term Debts) / Total Assets

Total Debt to Total Asset Ratio Calculator

How to Calculate using Calculator

This calculator helps the user with an easy and correct calculation of the ratio by inputting the following components.

  1. Long-Term Debt: It should include all the long-term debts of the company.
  2. Short-Term Debt: It should include all the short-term debts of the company.
  3. Total Assets: Total assets mean all the assets, whether it is current, fixed, tangible, or intangible. In short, it constitutes the complete asset side of a balance sheet.

Note: Shareholder’s equity is not part of this anyway

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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