AOTG: What is Debt to Asset Ratio in AOTG

From AutoCount Resource Center
Jump to navigation Jump to search

Question: What is Debt to Asset Ratio in AOTG?


Answer:

The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business.

A ratio greater than 1 shows that a considerable proportion of assets are being funded with debt, while a low ratio indicates that the bulk of asset funding is coming from equity.

A ratio greater than 1 also indicates that a company may be putting itself at risk of not being able to pay back its debts, which is a particular problem when the business is located in a highly cyclical industry where cash flows can suddenly decline.


To view the deb to asset ratio, login on to AOTG > Financial > Asset & Liabilities


Debt to asset 1.png



System auto capture ratio by today’s date. Example: -0.073


Debt to asset 2.png



You can refer Balance Sheet Statement for the figure taken to calculate Deb to Asset Ratio.

Debt to asset 3.png


  • to date filtering
  • Assets = DR (Type: Assets) - CR (Type: Assets)
  • Liabilities = CR (Type: Liabilities) - DR (Type: Liabilities)


Debt to Asset Ratio = Liabilities / Assets -1567.35 / 21607.47 = -0.073



By: CK 180618, KM 180618, P180628



Go to menu

IconAcc20.PNG AutoCount Accounting 2.0


IconAcc188.PNG AutoCount Accounting 1.8 / 1.9
Wiki-Payroll.png AutoCount Payroll
Wiki-POS.PNG AutoCount POS
Wiki-AOTG.PNG AutoCount On The Go
Wiki-Accounting-Plugin.png AutoCount Accounting Plug-In Documentations