Debt Ratio formula
\[ \dfrac{\text{Total liabilities}}{\text{Total assets}} \]
Terms
- Total assets, closing balance: Everything the company owns or controls: non-current plus current assets.
- Total liabilities, closing balance: Everything the company owes to others: current plus non-current liabilities.
Result
Debt Ratio is a ratio. Lower is better.
Target
There is no general target; compare with the company’s own history and with peers in the same industry.
Debt Ratio in Business Central
Total assets (closing balance)
- Category Assets (1) and every category below it
- Plus 1 account assigned directly: 17120 Decreases during the Year
55 posting accounts in total.
The full account list is on the Total assets page.
Total liabilities (closing balance)
- Category Liabilities (10) and every category below it
- Plus 1 account assigned directly: 23850 Employees Payable
33 posting accounts in total.
The full account list is on the Total liabilities page.
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