This ratio is used to assess your debt level and will show up the potential problem of paying up the liabilities when called for. This ratio simply compares the total liabilities with the total assets.

Above 50% could mean that there may be insufficient assets to pay for the liabilities.

As debt servicing is generally from cash income, high debt to asset ratio does not clearly indicate the ability to pay up the liabilities on the due date.

Debt To Asset Ratio = Total Liabilities divided by Total Assets 

                      A ratio of 50% or less would be the general acceptable limit.