Also known as debt asset ratio, it shows the percentage of your company’s assets financed by creditors.
Bankers often use the debt‑to‑asset ratio to see how your assets are financed. In general, a bank will consider a lower ratio to be a good indicator of your ability to repay your debts or take on additional debt to support new opportunities. A high ratio indicates a substantial dependence on debt and could be a sign of financial weakness.
How to calculate the debt-to-asset ratio:
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