Company XYZ’s ratio of 40% indicates that 40% of its assets are financed through liabilities, while the remaining 60% is funded by equity. The Total Liabilities / Total Assets ratio is a vital ...

A basic tenet of double-entry book-keeping is that total assets (what a business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.

It's calculated as Total Assets - Total Liabilities ... Then input the value of their shareholders' equity in cell B2. In cell C2, enter the formula: =A2/B2*100. The resulting figure will be ...

Reviewed by Amy Drury Some of the major reasons why the debt-to-equity (D/E) ratio varies significantly from one industry to ...