1, and 70% of the asset-liability ratio is called the warning line. However, the asset-liability ratio indicators of different industries are different.
2. Abnormal asset-liability ratio: If the asset-liability ratio reaches 100% or exceeds 100%, the company has no net assets or is insolvent!
Asset-liability ratio is the percentage of total liabilities divided by total assets at the end of the period, that is, the proportional relationship between total liabilities and total assets. The asset-liability ratio reflects how much of the total assets are financed by borrowing, and can also measure the extent to which enterprises protect the interests of creditors in the liquidation process. Asset-liability ratio reflects the proportion of capital provided by creditors to total capital, also called debt operating ratio.