Introdução
Debt to Assets measures what proportion of a company's assets are financed by debt vs. equity. It is a measure of leverage and financial risk.
Explicação
If a company has $100M in assets and $60M in debt, 60% of its assets are financed with debt. The higher this ratio, the greater the financial risk.
Fórmula
Debt to Assets = Total Debt / Total Assets
Exemplo
Real Estate vs Tech: - Real Estate: Debt $800M, Assets $1,000M → Debt/Assets = 80% (highly leveraged) - Apple: Debt $120B, Assets $350B → Debt/Assets = 34% (moderate) Real estate uses a lot of leverage; tech typically less.
Como interpretar
Debt to Assets < 30% = conservative, low risk. 30-60% = moderate. > 60% = high leverage, high risk. It varies by sector: utilities/real estate 60-80%, retail 40-60%, tech 10-30%. High ratio amplifies returns in good times but increases the risk of bankruptcy in bad times. Red flag: Debt/Assets >70% and declining EBITDA = serious problems.
Ideias-chave
- Debt to Assets = Total Debt / Total Assets
- Measures % of assets financed with debt
- Debt/Assets < 30% = low risk
- Debt/Assets > 60% = high risk
- Real estate/utilities: 60-80%, Tech: 10-30%
- High and declining EBITDA = severe red flag