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The total debt ratio is .5; total debt would be .5 as well as total equity (both added together equal 1). Total debt ratio = .5 (total debt)/.5 (total equity)= 1.
To determine your debt to asset ratio, divide your total debt by your total assets. This ratio helps you understand how much of your assets are financed by debt.
Loan companies typically look at your debt to total asset ratio when making lending decisions. If your debt is more than 50 percent of your total assets, they may not give you a large loan.
Your debt-to-income ratio is your total monthly debt obligations divided by your total monthly income. Increase your income or lower your debt payments to have a more favorable debt-to-income ratio. How do the credit companies know your income?
To determine the debt to assets ratio of a company, you divide the total debt of the company by its total assets. This ratio helps assess the company's financial health and how much of its assets are financed by debt.