Debt Ratio Formula

This page shows the debt ratio equation which is calculated based on the total debt divided by total assets. The debt ratio is a financial leverage ratio which gives you a general idea about the amount of leverage being used by a company. Debt ratio formula is given as (Total debt / Total assets). In general, the higher the ratio, the company is in more risk with debt. Just divide the total liabilities by total assets to calculate ratio of debt.

Debt Ratio Equation

Formula:

Debt Ratio (DR) = Total Liabilities / Total Assets

Related Calculator:

Use this debt ratio formula page to learn the ratio of debt calculations for a company. By knowing the debt ratio you can monitor the firm's growth and performance of a company.


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