Debt ratio
What share of total assets is financed with borrowed money.
The debt ratio is liabilities divided by total assets, as a percentage. Together with the equity ratio it adds to a hundred per cent: two views of the same side of the balance sheet.
Above a hundred per cent means negative equity — liabilities exceed assets. In the Netherlands that is above all a signal to the board: continuing to trade when it is clear obligations can no longer be met goes to directors' liability.
Overit calculates this from the published figures.
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