4th December 2019

accountingcoach
10

What does the debt to total assets ratio tell us?

The debt to total assets ratio is an indicator of financial leverage. It tells you the percentage of total assets that were financed by creditors, liabilities, debt. The debt to total assets ratio is calculated by dividing a corporation's total liabilities by its total assets.

Moreover, what is a good long term debt ratio?

The long term debt to total assets ratio is a measurement representing the percentage of a corporation's assets financed with loans or other financial obligations lasting more than one year.

Is long term debt an asset?

Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt.

What is a good ratio of fixed assets to long term liabilities?

The fixed-assets- to long-term-liabilities ratio is a way of measuring the solvency of a company. A company's long-term debts are often secured with fixed assets, which is why creditors are interested in this ratio. This ratio is calculated by dividing the value of fixed assets by the amount of long-term debt.
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