Debt to Asset Ratio or Debt Ratio gives great insights into the company’s capital structure.

It explains how much of the company’s overall Assets are funded via Debt.

If the company funds most of its Assets via Debt, this may bring a corresponding interest burden on its profitability.

Understanding the Debt to Asset Ratiocovers the topic in greater details including the basic formula to real life application/interpretation of ratio

This template helps you in calculating the Debt Ratio for any company.

• The main calculation sheet picks the numerator and denominator from the Income Statement and Balance Sheet and arrives at the final Debt Ratio.
• We have used the financials of Walmart Inc to explain the calculations. You can use the financials of any company and arrive at the ratio.