Asked by
Brandon Johnson
on Nov 14, 2024Verified
The debt to total assets ratio measures the percentage of the total assets provided by creditors.
Debt to Total Assets Ratio
A financial metric indicating the proportion of a company's assets financed through debt, reflecting financial leverage and risk.
Total Assets
The sum of all reported assets owned by a company, including both current and non-current assets, reflecting the total resources at its disposal.
Creditors
Individuals or entities that have lent goods, money, or services to a company or person, expecting to be repaid at a future date.
- Understand the meaning and importance of the debt to total assets ratio.
Verified Answer
SI
Learning Objectives
- Understand the meaning and importance of the debt to total assets ratio.