The Total Liabilities / Total Assets ratio is a financial metric that measures the proportion of a company’s assets financed by liabilities. It provides insights into a company’s leverage and ...
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.
There are several ways to determine ROI, but the most frequently used method is to divide net profit by total assets. So if your net profit is $100,000 and your total assets are $300,000 ...