Total liabilities divided by total assets. The debt/asset ratio shows the proportion of a company's assets which are financed through debt. If the ratio is less than one, most of the company's assets are financed through equity. If the ratio is greater than one, most of the company's assets are financed through debt. Companies with high debt/asset ratios are said to be "highly leveraged," and could be in danger if creditors start to demand repayment of debt.

Related information about debt/asset ratio:

Related information about debt/asset ratio:

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Definition of debt/asset ratio: A determination of the percentage of a business's ... A company is considered to be highly leveraged if its debt / asset ratio is high.

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