Debt to Assets Ratio
Calculate the debt to assets ratio, a solvency ratio that measures the proportion of a company’s assets that are financed by debt.
This ratio, also known as the Debt Ratio, indicates the percentage of a company’s total assets that are funded by debt. It is a measure of a company’s financial leverage and indicates the extent to which a company relies on borrowed funds to finance its operations. A higher ratio implies a higher level of debt in the company’s capital structure, which could increase financial risk.
The formula is as follows:
\[\text{Debt to Assets Ratio} = \text{Total Debt} / \text{Total Assets}\]Also known as: asset leverage, debt ratio.
Debt to Assets Ratio in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_debt_to_assets_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["NEE", "DUK", "SO"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_debt_to_assets_ratio()
Or, after setting up the Finance Toolkit MCP, ask:
What share of their assets did NextEra Energy, Duke Energy and Southern Company finance with debt from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| DUK | 0.4025 | 0.4206 | 0.4548 | 0.4574 | 0.4642 |
| NEE | 0.3891 | 0.4088 | 0.4125 | 0.433 | 0.4495 |
| SO | 0.4349 | 0.4384 | 0.4557 | 0.4565 | 0.4757 |
Parameters
get_debt_to_assets_ratio accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses single-period flows (per quarter and not annualized with quarterly data). | 4 |