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
get_debt_to_assets_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_debt_to_assets_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
debt_to_assets_ratios = toolkit.ratios.get_debt_to_assets_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.3889 | 0.3756 | 0.3515 | 0.3262 | 0.3128 |
| TSLA | 0.1428 | 0.0698 | 0.0898 | 0.1116 | 0.0608 |
Parameters
get_debt_to_assets_ratio accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.