Our Financial Analysis Success Kit is Ready!
Why you should take a look at the Financial Analysis Success Kit:We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
The eBook "Learn Ratio Analysis In Minutes"
The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)
A BONUS...Our eBook of "Key Financial Statement Terms"
Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series
Learn more on our product page:Take a Look
Measures debt in relation to assets in an attempt to gauge the amount of risk.[sc:kit02 ]
Debt to Asset Ratio Formula
Explanation of Debt to Asset Ratio
The Debt to Asset Ratio measures the percentage of the company’s Total Assets that are financed with debt (Total Liabilities). This ratio basically looks at what debt the company owes, and compares that debt to what assets the company owns.
Importance of Debt to Asset Ratio
The lower the Debt to Asset Ratio, the better, as companies with high amounts of debt introduce more risk. You certainly want to look very hard at companies that have more Total Liabilities than Total Assets, as this is a precarious position for a company to be in.
Depending on the industry of the company, you might expect the company to have two or three times as many assets as liabilities. Anything less than this might be a signal that the company is running into trouble.