answersLogoWhite

0

A healthy debt to asset ratio is typically around 0.5 or lower. This means that for every dollar of assets, there is 50 cents or less of debt.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Related Questions

What is considered a good debt to asset ratio?

A good debt to asset ratio is typically around 0.5 or lower. This means that a company has more assets than debt, which is seen as a positive indicator of financial health.


How can one determine their debt to asset ratio?

To determine your debt to asset ratio, divide your total debt by your total assets. This ratio helps you understand how much of your assets are financed by debt.


What is considered a good debt to asset ratio for a company?

A good debt to asset ratio for a company is typically around 0.5 to 0.6, meaning that the company has more assets than debt. This ratio shows how much of the company's assets are financed by debt, with lower ratios indicating less financial risk.


What is considered a healthy debt to equity ratio for a company?

A healthy debt to equity ratio for a company is typically around 1:1 or lower. This means that the company has roughly the same amount of debt as it does equity, indicating a balanced financial structure.


What is a good asset to equity ratio for a company?

A good asset to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and ownership in the business.


Debt asset ratio 74 return on asset 13 percent what is return on equity?

.5


Is debt to equity ration generally equal or less than the debt to asset ratio?

less


What is the average personal debt asset ratio of individuals?

When people are young and have just purchased a house a personal debt asset ratio of 80% or more is common. For middle-aged people and older a ratio of 50% or less is desirable.


Total debt to total asset ratio?

Loan companies typically look at your debt to total asset ratio when making lending decisions. If your debt is more than 50 percent of your total assets, they may not give you a large loan.


What is a good asset to debt ratio and how can it impact financial stability?

A good asset to debt ratio is typically considered to be around 1.5 or higher. This means that a person or company has more assets than debt. A higher ratio indicates financial stability because it shows that there are enough assets to cover debts, reducing the risk of default. On the other hand, a low ratio can indicate financial risk and potential difficulties in meeting financial obligations.


What is considered a good debt-to-net worth ratio?

A good debt-to-net worth ratio is typically considered to be below 0.5, meaning that your total debt is less than half of your total net worth. This indicates a healthy financial position with manageable levels of debt relative to your overall assets.


What is a good debt to asset ratio for a family?

A good debt to asset ratio for a family is typically around 0.5 or lower. This means that the family's total debt is no more than half of their total assets. A lower ratio indicates less financial risk and better financial health.