The Net Debt to Assets Ratio is a measure of the financial leverage of the company. It tells you what percentage of the firm’s Assets is financed by Net Debt and is a measure of the level of the company’s leverage. It is calculated as Net Debt divided by Total Assets. This is measured using the most recent balance sheet available, whether interim or end of year and includes intangibles and goodwill.
The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms.
Companies with high Net Debt to Asset ratios are said to be "highly leveraged". A company with a high ratio could be in danger if creditors start to demand repayment of debt.
| Ticker | Name | Net Debt / Assets | StockRank™ |
|---|---|---|---|
| LON:RCOI | Riverstone Credit Opportunities Income | -99.73% | 90 |
| LON:450 | 450 | -98.69% | 3 |
| LON:SMIF | Twentyfour Select Monthly Income Fund | -98.03% | 86 |
| LON:GV1O | Gresham House Renewable Energy VCT 1 | -97.22% | 24 |
| LON:GV2O | Gresham House Renewable Energy VCT 2 | -96.91% | 15 |