Total Debt to Total Assets Ratio
Formula: Total Debt to Total Assets Ratio = Total Debt / Total Assets
The Total Debt to Total Assets Ratio is a financial metric that shows the proportion of a company's assets that are financed through debt. It is an indicator of the company's financial leverage and risk. A higher ratio suggests a greater reliance on debt to finance assets, which can indicate higher financial risk. This ratio is particularly important for creditors and investors in assessing the overall risk of a company.