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.

Two debts of the same size move the ratio by the same amount, whatever they cost and whatever they bought, so forty percent made up of a fixed mortgage at 3% reads exactly like forty percent of revolving credit at 24%.