Total-Debt-to-Total-Assets Ratio: Meaning, Formula, and What’s Good.

What is the Total-Debt-to-Total-Assets Ratio?

The Total-Debt-to-Total-Assets Ratio (DTTA) is a financial ratio that measures the percentage of a company's total debts to its total assets.

What is a good Total-Debt-to-Total-Assets Ratio?

A good Total-Debt-to-Total-Assets Ratio varies by industry, but a DTTA of 60% or less is generally considered good. What does a debt ratio of 0. 25 mean? A debt ratio of 0.25 means that a company's debt is equal to 25% of its total assets. This ratio is used to measure a company's financial leverage, and a higher ratio indicates a higher level of debt. How do I know if my debt ratio is good? Your debt ratio is a good indicator of your financial health. A debt ratio of less than 20% is considered excellent, while a debt ratio of over 35% is considered poor. What is the difference between debt ratio and debt to asset ratio? Debt ratio is the ratio of a company's total debt to its total assets. Debt to asset ratio is the ratio of a company's total debt to its total equity.

What happens if a company has a high debt ratio?

If a company has a high debt ratio, this means that the company has a high amount of debt relative to its assets. This can be a sign that the company is in financial trouble, as it may be unable to make its debt payments. The company may also be at risk of defaulting on its debt, which could lead to bankruptcy.

How do you calculate debt to total assets ratio on a balance sheet? The debt to total assets ratio is calculated by dividing the total debt on a company's balance sheet by the total assets on the balance sheet. This ratio gives investors an idea of how leveraged a company is - in other words, how much debt the company is using to finance its assets. A high debt to total assets ratio indicates that a company is highly leveraged and may be at risk of defaulting on its debt obligations if its income decreases.