Total Debt / total Assets
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This enables comparisons of leverage to be made across different companies. The higher the ratio, the higher the degree of leverage, and consequently, the higher the degree of financial risk. This is a broad ratio that includes long-term and short-term debt (borrowings maturing within one year).
Calculated as: Total Debts (Short term + long term) / Total Assets