Total Debt to Total Assets
A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding short-term and long-term debt, and then dividing by the company's total assets.
Investopedia Commentary
This is a very broad ratio as it includes short- and long-term debt as well as all types of assets whether tangible or not.
Related Links
Introduction to Fundamental Analysis
Debt Reckoning
When Companies Borrow Money
See also: Assets, Balance Sheet, Current Assets, Current Liabilities, Debt, Tangible Asset
Also spelled: debt to assets ratio