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The Percentage of a Company's Total Assets That It Would

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The percentage of a company's total assets that it would take to pay off all of the company's liabilities is called the debt ratio.


Definitions:

Dollar of Sales

The total monetary value of sales transactions completed over a specific period.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets relative to its current liabilities.

Numerator

The top number in a fraction or ratio that represents the part of the whole being considered.

Denominator

In mathematics, the denominator is the bottom part of a fraction that indicates how many equal parts the whole is divided into.

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