Long term debt to total assets ratio

What is Long term debt to total assets ratio?

Long term debt to total assets ratio counts as a Long-term debt divided by Total assets.

Formula:

Long-term debt & Capital lease obligation / Total assets

What does Long term debt to total assets ratio mean?

It is an indicator of company assets that are financed by long-term loans and financial liabilities. It assesses the overall measure of financial position, reflecting a company's ability to meet loan requirements.