The debt ratio is the proportion of assets that are financed by debt.
A debt ratio of greater than 1.0 or 100% means that you have more debt than assets, while a debt ratio of less than 1.0 or 100% indicates that you have more assets than debt.
A high ratio may carry a risk of default on its loans if interest rates suddenly rise. A ratio below 1 means that a greater portion of assets is funded by equity.
The formula for calculating the debt ratio is:
Debt ratio = Total assets / Total debt.
CoinStats has a DeFi tab, where you can check the debt-to-total assets and the debt ratio. Please follow this link for more information.
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