Debt ratio

Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill').

${\displaystyle {\mbox{Debt ratio}}={\frac {\mbox{Total Debts}}{\mbox{Total Assets}}}}$

or alternatively:

${\displaystyle {\mbox{Debt ratio}}={\frac {\mbox{Total Liabilities}}{\mbox{Total Assets}}}}$

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