The Long Term Debt to Average Assets Ratio is a measure of the financial leverage of the company. It tells you what percentage of the firm’s Assets are financed by Long Term Debt and is a measure of the level of the company’s leverage. It is calculated as Long Term Debt divided by Average Total Assets.
This metric is calculated using balance sheet values from the same interim financial period as the current quarter, except from the previous year. For example, if the most recent quarter was Q2 for 2016, this ratio would represent the value for Q2 2015.
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 debt/asset ratios are said to be "highly leveraged". A company with a high debt ratio could be in danger if creditors start to demand repayment of debt.
Long-term debt is debt due for repayment in over 12 months and is not included in the current liabilities figure on the balance sheet. It includes mortgages and long-term leases, but not general trading liabilities.
| Ticker | Name | LT Debt / Avg Assets | StockRank™ |
|---|---|---|---|
| LON:BGUK | Baillie Gifford UK Growth Trust | 0.00 | 0 |
| LON:THRG | Blackrock Throgmorton Trust | 0.00 | 0 |
| LON:FJV | Fidelity Japan Trust | 0.00 | 0 |
| LON:ING | Ingenta | 0.00 | 69 |
| LON:IAT | Invesco Asia Trust | 0.00 | 0 |