Debt-to-Asset Ratio

Total liabilities divided by total assets, as a percentage. At 40%, forty cents of every dollar on your balance sheet is spoken for by a lender.

Promi reads the ratio in four bands, the same ones it uses inside the app: under 10% is low, under 30% is typical and usually means a mortgage, 30 to 60% is elevated, and above 60% is leveraged enough that a modest fall in asset values can wipe out the equity underneath. These are conventions drawn from balance sheets that look nothing like each other, so they orient rather than grade.

The ratio is blind to two things that matter: what the debt bought, and what it costs. Forty percent from a fixed mortgage at 3% behaves nothing like forty percent from revolving credit at 24%, and the ratio reports them identically. It is worth reading next to the rates.