Assets financed by debt.

Debt ratio is total debt divided by total assets, shown as a percentage. It measures what share of the business's assets are financed by creditors vs owners. Below 30% is conservative, 30-60% is moderate, above 60% is heavily amplified. Different from debt-to-equity because it measures debt against assets, not against equity alone.

5M debt on 12M total assets = 41.7% debt ratio. Moderate - creditors fund about 42% of the business, owners the remaining 58%. At 70%+ debt ratio, small revenue drops can push the balance sheet toward insolvency as asset values fluctuate against fixed debt obligations.

Debt ratio complements DSCR. Debt ratio shows balance-sheet risk (how much is owed); DSCR shows income-statement risk (whether cash flow covers payments). Both matter - high debt ratio with strong DSCR is livable; low debt ratio with weak DSCR is a red flag that operations aren't generating enough cash even on modest debt levels.

Quick example

With total debt of 5,000,000 and total assets of 12,000,000, the result is 41.67%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Total Debt and Total Assets. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Debt ratio = total debt ÷ total assets × 100. Equity portion = assets - debt. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.