Debt to Asset Ratio Calculator

Your details

Current portion of interest-bearing liabilities due within 12 months: bank overdrafts, current maturities of long-term debt, short-term loans.
Non-current interest-bearing obligations: bonds payable, term loans, mortgages, subordinated debt due after 12 months.
The sum of all assets on the balance sheet: cash, receivables, inventory, property, plant and equipment, intangibles.
Debt-to-Asset RatioElevated leverage
0.5

Total debt divided by total assets (decimal form)

Debt ratio (%)0.5%
Total debt100,000
Equity funding share0.5%
Asset coverage of debt2
0.5 x
Low leverage<0.3Moderate0.3-0.5Elevated0.5-0.7High0.7-1Critical1+

Your debt-to-asset ratio is 50.0%, which is elevated and warrants monitoring.

  • 50.0% of assets are debt-funded; less than half the asset base is unencumbered.
  • Lenders may apply stricter covenants or higher interest rates at this leverage level.
  • A downturn in asset values could push the ratio higher, reducing refinancing options.

Next stepReview your debt maturity schedule and consider whether short-term debt can be refinanced long-term to improve liquidity headroom.

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