what does the total debt to total assets ratio tell you 
total debt to total assets is a measure of the company s assets that are financed by debt rather than equity if the calculation yields a result greater than 1 this means the company is technically insolvent as it has more liabilities than all of its assets combined a result of 0 5 or 50 means that 50 of the company s assets are financed using debt with the other half being financed through equity 