Debt-to-Total-Assets Ratio

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The debt-to-total-assets ratio is a financial metric that quantifies the proportion of a company’s assets financed by debt. It is calculated by dividing total debt by total assets, providing insight into the company’s leverage and financial stability. A higher ratio indicates greater reliance on debt for asset financing, which may imply higher financial risk. This ratio is crucial for assessing a company’s capital structure and risk profile.

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