How to calculate the debt ratio

Hello, the formula for calculating the asset-liability ratio of bank loans is: asset-liability ratio = (total liabilities Total assets) * 100. The debt-to-asset ratio is the percentage of total liabilities divided by total assets, that is, the ratio of total liabilities to total assets.

The debt-to-asset ratio reflects the extent to which the total assets are financed through borrowing, and can also measure the extent to which a company protects the interests of creditors in liquidation. To determine whether the debt-to-asset ratio is reasonable, you must first look at whose position you stand on. The debt-to-asset ratio is an indicator that reflects the ratio of capital provided by creditors to total capital, also known as the debt-to-operating ratio.

From the standpoint of creditors, they are most concerned about the safety of the money lent to the enterprise, that is, whether the principal and interest can be recovered on time. If the capital provided by the shareholders is only a small proportion of the total capital of the enterprise, the risk of the enterprise will be borne mainly by the creditors, which is detrimental to the creditors. Therefore, they hope that the lower the debt ratio, the better, and the enterprise will repay the debt***, so that there will not be much risk in lending to the enterprise.

From the perspective of shareholders, since the funds raised by the enterprise through debt play the same role in the operation as the funds provided by shareholders, the shareholders are concerned about whether the rate of return on total capital exceeds the interest rate on borrowed money, that is, the consideration of borrowed capital. When the rate of return on total capital earned by the enterprise exceeds the rate of interest paid on borrowings, the profits received by shareholders increase. If, on the contrary, the rate of return on the use of all capital is lower than the rate of interest on borrowings, it is to the disadvantage of shareholders, since the excess interest on borrowed capital is compensated by their share of profits.

Therefore, from the standpoint of shareholders, when the rate of return on total capital is higher than the rate of interest on borrowings, the larger the debt, the better, otherwise the reverse is true. Shareholders of enterprises often adopt the method of borrowing to obtain control of the enterprise with limited capital and at a limited price, and can obtain the leveraged benefits of debt operation. Therefore, it is also known as financial leverage in financial analysis.

From the standpoint of the operator, if the debt is very large and exceeds the psychological tolerance of the creditor, the enterprise will not be able to borrow money. If the enterprise does not borrow, or the debt ratio is very small, it indicates that the enterprise is cowering, has little confidence in the future, and has a poor ability to use creditor capital for business activities. From the perspective of financial management, enterprises should assess the situation and comprehensively consider that when using the asset-liability ratio to make decisions on borrowed capital, they must fully estimate the expected profits and increased risks, weigh the benefits and disadvantages between the two, and make the right decisions.

Legal basis] Article 130 of the ** Law: ***** supervision and administration institutions shall stipulate the risk control indicators such as the net capital, the ratio of net capital to liabilities, the ratio of net capital to net assets, the ratio of net capital to self-management, underwriting, asset management and other business scales, the ratio of liabilities to net assets, and the ratio of current assets to current liabilities.

Debt-to-asset ratio = total liabilities Total assets 100%.

1. Total liabilities: refers to the sum of all liabilities assumed by the company, including current liabilities and long-term liabilities.

2. Total assets: refers to the sum of all assets owned by the company, including current assets and long-term assets.

In enterprise management, the level of the asset-liability ratio is not static, it depends on the angle from which it is analyzed, creditors, investors (or shareholders), and operators are different; It also depends on whether the international and domestic economic environment is a peak or a bottoming up period; It also depends on whether the management is radical, moderate or conservative, so there has been no unified standard for many years, but for enterprises: it is generally believed that the appropriate level of asset-liability ratio is 40% or 60%.

We are pleased to answer <> answer that the debt ratio is an important financial indicator, which can reflect the level of financial risk of the enterprise. The debt ratio is calculated by the ratio of a company's total liabilities to its total assets. Formula for calculating the debt ratio:

Debt Ratio = Total Liabilities Total Assets 100% Total Liabilities: Generally refers to the sum of short-term and long-term liabilities of the enterprise, including external debts, internal borrowings, etc.; Total assets: generally refers to the sum of current and non-current assets of an enterprise, including inventory, accounts receivable, long-term investment, etc.

Generally speaking, the higher the debt ratio, the greater the financial risk of the enterprise, which can reflect whether the financial performance of the enterprise is good. If the debt ratio of the enterprise is too high, the capital chain will generally be broken, which will lead to the cessation of business operations. <>

The formula for calculating the asset-liability ratio is as follows: asset-liability ratio = (total liabilities and total assets) 100%, which is an important indicator to measure the level of liabilities and the degree of risk of an enterprise.

1. The debt ratio of the bank inquiry is calculated as follows: according to all the liabilities (including credit cards and loans) (income * base), and the credit card debt ratio is generally calculated according to the used and available limit of the credit card.

2. The asset-liability ratio is the total liabilities in the balance sheet divided by the total assets, which is a ratio value that reflects the company's long-term solvency and slag. The larger the debt-to-asset ratio, the worse the long-term solvency, and vice versa, the better.

Hello, the debt ratio refers to the ratio of the total liabilities of a business or individual to the total net assets. It is calculated as follows: Debt Ratio = Total Liabilities Net Assets.

Total liabilities include all outstanding liabilities such as borrowings, accounts payable, interest payable, etc.; Net assets refer to the total assets of a business or individual minus all liabilities. For example, if the total debt of an enterprise is 1 million yuan and the net assets are 2 million yuan, its debt ratio is 50%. The debt ratio is an important indicator to measure the solvency and financial risk of a business or individual.

Generally speaking, the lower the debt ratio, the stronger the solvency of the business or individual and the smaller the financial risk. However, it is also necessary to consider factors such as the efficiency of capital utilization. It is important to note that the lower the debt ratio, the better.

Brother Liang's low debt ratio may mean that the enterprise or individual does not use enough funds to maximize the benefits of financial and dust. Therefore, a reasonable debt ratio should be assessed on a case-by-case basis. Hopefully, my answers will help you better understand and calculate the debt ratio.

The debt ratio refers to the ratio of the total liabilities to the total assets of a business or individual. The calculation formula is: negative debt ratio = total liabilities Total assets, among which, the total amount of rebate liabilities includes all debts of enterprises or individuals (such as loans, arrears, accounts payable, etc.), and total assets include assets owned by enterprises or individuals (such as cash, inventory, real estate, **, etc.).

The higher the debt ratio, the greater the debt pressure of the enterprise or individual, and the higher the business risk.