How much is the asset-liability ratio normal?

100%× total liabilities/total assets = asset-liability ratio. The lower the data, the worse the ability to use external funds, and the less assets acquired by liabilities; If it is higher, it means that the company has higher risks and more financing through borrowing.

Under normal circumstances, the asset-liability ratio of 40%~60% is normal, and the situation is different in different industries. For example, it is normal that the production category does not exceed 70%, and the trade category does not exceed 80%. The warning line is 1.70%.

If it is at the end of the bear market, 40%~60% is reasonable. If it is during a bull market, the debt ratio of 30% to 50% is normal, but it cannot be too high.

What is the asset-liability ratio?

Asset-liability ratio, also known as debt operation ratio, is used to measure the ability of enterprises to use the funds provided by creditors to conduct business activities and reflect the safety of creditors' loans. By comparing the total liabilities and total assets of the enterprise, it is reflected in the total assets of the enterprise in the form of debt ratio.