Long-Term Debt to Total Assets Ratio
A company’s long-term-debt-to-total-asset ratio measures its leverage and acts as a metric for determining its solvency. The ratio is calculated by dividing total long-term debt (i.e. debt with more than a year to maturity) by total assets. A very high ratio is a potential danger sign for lenders and investors as it means the company may have to liquidate a large proportion of its assets to repay the long-term debt.
Author: Stevie Stamm
Last Updated:
Views: 6261
Rating: 5 / 5 (60 voted)
Reviews: 83% of readers found this page helpful
Name: Stevie Stamm
Birthday: 1996-06-22
Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617
Phone: +342332224300
Job: Future Advertising Analyst
Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding
Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.