How to calculate debt ratio
In the past 10 days, discussions about debt ratios have remained high across the Internet. Especially as global economic fluctuations intensify, individuals and companies have become significantly more concerned about debt risks. This article will focus on the calculation method of debt ratio, and combine it with structured data to help readers quickly understand this financial indicator.
1. What is debt ratio?
The debt ratio is an important measure of the debt burden of an economy or an individual, usually expressed as the ratio of debt to income or assets. It can help assess debt solvency and is a core reference data for banks, investors and regulators.
2. Common types and calculation formulas of debt ratios
| type | Calculation formula | Applicable scenarios |
|---|---|---|
| personal debt-to-income ratio | (Monthly debt payment ÷ monthly income) × 100% | Personal loan approval, credit assessment |
| Enterprise debt-to-asset ratio | (Total liabilities ÷ total assets) × 100% | Corporate financial health analysis |
| National debt as a share of GDP | (Total national debt ÷ GDP) × 100% | sovereign credit rating |
3. Calculation example (taking personal debt-to-income ratio as an example)
| project | Amount (yuan) |
|---|---|
| Mortgage monthly payment | 5,000 |
| Car loan monthly payment | 2,000 |
| Credit card repayment | 1,500 |
| total monthly income | 20,000 |
| debt ratio | (5,000+2,000+1,500)÷20,000×100%=42.5% |
4. Warning line standards for debt ratio
| Subject type | safety range | risk warning line |
|---|---|---|
| personal | ≤35% | ≥50% |
| enterprise | ≤60% | ≥70% |
| nation | ≤60% | ≥90% |
5. Practical suggestions for reducing debt ratio
1.Increase revenue streams: Increase the denominator of total income through side hustle or monetization of skills
2.debt restructuring: Convert high-interest debt into low-interest loans to reduce interest expenses
3.Asset realization: Selling idle assets directly reduces total liabilities
4.strict budget: Adopt the 50/30/20 rule (50% for necessities, 30% for non-essential expenses, 20% for savings and loan repayments)
6. Analysis of recent hotspot correlations
According to public opinion monitoring, searches for "early loan repayment wave" and "debt rate optimization" have increased by 210% year-on-year in the past 10 days. Typical cases have emerged in many places of residents reducing their debt ratios through early repayment after mortgage interest rates were lowered. Data from a bank show that the median personal debt ratio in Q2 2023 has reached 39.7%, an increase of 5.2 percentage points from the same period last year.
7. Special reminder
Things to note when calculating debt ratio:
① Floating rate debt needs to be estimated based on the highest interest rate
② Guaranteed debt should also be included in the calculation
③ Seasonal income earners need to take the 12-month average
Mastering the scientific calculation method of debt ratio can effectively avoid financial crisis. It is recommended to recalculate every quarter and adjust the financial structure in a timely manner.
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