Debt to Asset Ratio Definition
The debt to asset ratio or total debt to total assets ratio is an indication of a companys financial leverage. A debt management is a contractual agreement between two parties debtor and creditor to safeguard their own interest. Financial Ratios Top 28 Financial Ratios Formulas Type Financial Ratio Debt To Equity Ratio Financial The asset coverage ratio is a test that determines a companys ability to cover debt obligations with its assets after all liabilities have been satisfied. . The formula is derived by dividing all short-term and long term debts Long Term Debts Long-term debt is the debt taken by the company that gets due or is payable after one year on the date of the balance sheet. Debt to asset indicates what proportion of a companys assets is financed with debt rather than equity. In other words this is the revenue earned after the company or department pays all of its fixed and variable costs associated with producing the goods ...