calculate_debt_to_assets
Calculate the debt-to-assets ratio: total debt divided by total assets — the proportion of a company’s assets financed by debt. Formula: Debt-to-Assets = Total Debt / Total Assets. WHEN TO USE: Use to measure overall leverage and asset encumbrance; values above 0.5 indicate debt funds more than half of assets. WHEN NOT TO USE: Do NOT use when you need the debt-to-equity view of capital structure (use calculate_debt_to_equity). BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { debt_to_assets: decimal (e.g. 0.42 = 42%), debt_to_assets_pct: number (e.g. 42.0), inputs }. PARAMETERS: total_debt (required): Total debt, e.g. 300000. Must be >= 0. total_assets (required): Total assets, e.g. 720000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| total_debt | Yes | Total debt, e.g. 300000. Must be >= 0. | |
| total_assets | Yes | Total assets, e.g. 720000. Must be > 0. |