---
title: "Definition of D/A"
url: https://signalscreener.fr/definition/debt-to-assets/
markdown_url: https://signalscreener.fr/definition/debt-to-assets.md
description: "The percentage of a company's assets that are financed by debt rather than equity."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "D/A"
  - "Debt to Assets"
translations:
  de: https://signalscreener.fr/de/definition/debt-to-assets.md
  es: https://signalscreener.fr/es/definition/debt-to-assets.md
  fr: https://signalscreener.fr/fr/definition/debt-to-assets.md
---

# Debt to Assets

## What is D/A?

The percentage of a company's assets that are financed by debt rather than equity.

## Think of it like this

Like knowing what percentage of your house is owned by the bank vs. your own equity.

## Formula

```
Debt/Assets = Total Debt ÷ Total Assets × 100
```

- **Total Debt**: All short-term and long-term debt
- **Total Assets**: Everything the company owns

## Why it matters

- Shows overall leverage level
- Higher ratio = more financial risk
- Affects credit ratings and borrowing costs
- Important for assessing bankruptcy risk

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 30% | Conservative | Low leverage, strong balance sheet |
| 30-50% | Moderate | Balanced capital structure |
| 50-70% | Aggressive | Higher leverage, watch interest costs |
| > 70% | High Risk | Significant financial risk |

## Real-world example

Utilities often have 60-70% debt/assets due to stable cash flows supporting debt service.

---

This is educational content, not financial advice.

Source: [Definition of D/A](https://signalscreener.fr/definition/debt-to-assets/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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