Determine Debt Ratio
Debt ratio shows what share of assets is financed by debt.
Formula: Debt Ratio = Total Debt Γ· Total Assets Γ 100
Keep rates, balances, prices, and time periods on the same basis. An annual rate should not be combined with a monthly period unless the formula accounts for that conversion.
Check the final amount against the starting figure and rate. A large unexpected difference often points to a period or percentage entered in the wrong form.