The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, the ratio shows how much of a company’s operations are funded by debt.

The capital-to-risk weighted assets ratio determines if a bank has enough capital to meet its obligations. Learn what the ...

Another commonly used metric is the debt-to-total assets ratio. This ratio expresses the proportion of a company’s assets that are financed with borrowed money. Note: Short and long-term debt, ...

Assets are important because your lender may be unwilling to loan you any more money if your debt-to-equity ratio exceeds a certain figure. If sales and assets grow at the same rate, your debt-to ...

The acid-test ratio can be impacted by other factors such as how long it takes a company to collect its accounts receivables, the timing of asset purchases, and how bad-debt allowances are managed.