Debt Ratio Calculator – Evaluate Your Company's Financial Health
Debt Ratio Calculator
🕐 Measure your debt level in seconds
With this tool, you can find out how indebted your company is in relation to its total assets.
✅ Fast and accurate – Just enter the data and get the result instantly.
✅ Avoid mistakes – Automatic calculation without Excel sheets.
✅ Optimize your strategy – Make informed decisions to maintain a stable financial structure.
📢 Use our calculator to better manage your debts.
What is the Debt Ratio?
He Debt Index measures the relationship between the total liabilities and total assets of a company. This indicator allows us to know what percentage of assets are financed with debt.
🔹 Why is it important?
If the index is too high, the company may be at financial risk. If it is very low, it could mean that you are not making good use of external financing.
📢 Does your company have a healthy debt level? Use the calculator to find out.
Recommended books for managing debt
💰 Improve your company's financial health with these key readings.
📌 1️⃣ Financial Intelligence for Entrepreneurs – Karen Berman
📖 Learn to interpret financial statements and make better decisions based on debt ratios.
📌 2️⃣ The Lean CFO – Nicholas S. Katko
📖 Optimize your company's financial structure and improve debt management for stronger growth.
📌 3️⃣ The Intelligent Investor – Benjamin Graham
📖 A finance classic that teaches you how to assess financial risks and make decisions based on numbers.
📌 How Does Our Debt Ratio Calculator Work?
Our calculator follows a Simple three-step process:
1️⃣ Data Entry
To calculate the Debt Index, enter the following information:
- Total Liabilities 💰 – The company’s total debt.
- Total Assets 🏢 – Everything the company owns with financial value.
📢 Why is it important?
A high debt ratio may indicate financial risk, while a low one can mean lack of investment in growth.
2️⃣ Automatic Calculation
We use the following standard formula to calculate the Debt Index:
📐 Debt Ratio = Total Liabilities / Total Assets
The result will tell you what percentage of assets are financed with debt.
3️⃣ Results and Recommendations
🔹 If the index is high, review your payment capacity and seek to reduce debt.
🔹 If the index is low, analyze whether you are making good use of financing opportunities.
📢 Optimize your financial structure with our calculator.
📊 Example of a Calculation Using the Debt Ratio Calculator
Imagine your company has the following data:
💰 Total Liabilities: $80,000
🏢 Total Assets: $200,000
📐 Applying the formula:
📊 Debt Ratio = 80,000 / 200,000 = 0.40 (40%)
🔹 This means that 40% of assets are financed with debt, a level considered moderate.
📢 Does your company have a healthy debt level? Find out with our calculator.
⚠️ Common Mistakes When Using the Debt Ratio Calculator
🚫 Do not include all debts – Be sure to add up all liabilities, including loans and financial obligations.
🚫 Confusing net assets with total assets – Assets must include the entire financial value of the company.
🚫 Failure to correctly interpret the result – A high index it's not always bad, but it must be managed with caution.
📢 Use our calculator and avoid mistakes in your financial analysis.
📊 Comparison: Calculator vs. Traditional Methods
Why use our calculator instead of manual calculations?
✅ Fast and accurate – You get instant results without complicated calculations.
✅ Avoid human errors – Based on exact formulas and real data.
✅ Easy to use – You just enter the data and you get the result automatically.
✅ Accessible and free – Available online without additional software.
📢 Grow your business with efficient financial management.
📌 This is only for entrepreneurs, business owners and freelancers.
🚀 If you need to launch your website, SaaS or online store, visit NippyLaunch.com.
📈 If you need to do digital advertising and marketing for your company, visit CleefCompany.com.
🔹 Take advantage of the best tools to grow your business profitably.
🤔 Frequently Asked Questions about the Debt Ratio Calculator
1️⃣ How to easily calculate the Debt-to-Equity Ratio?
To calculate it, use our tool and get the result automatically. Just enter your data and press calculate.
2️⃣ What is the Debt Ratio Calculator for?
It helps you measure what percentage of your company's assets are financed by debt, allowing you to make smarter strategic decisions.
3️⃣ What is the formula for the Debt-to-Equity Ratio?
📐 Formula: Total Liabilities / Total Assets – This calculation is based on precise data to give you accurate results.
4️⃣ What does a high debt ratio mean?
Indicates that a significant portion of the company's assets are financed with debt, which may entail greater financial risk.
5️⃣ What is an ideal debt ratio?
It depends on the industry, but generally, an index below 50% is considered moderate and manageable.
6️⃣ How can I improve my debt ratio?
You can reduce debt, increase equity, or improve asset efficiency.
📢 Do you have more questions? Use our calculator and get answers in seconds.
English 
Spanish