Asset-liability ratio is the percentage of total liabilities divided by total assets at the end of the period, which is the proportional relationship between total liabilities and total assets.

Total liabilities: refers to the total liabilities undertaken by the company, including current liabilities and long-term liabilities.

Total assets: refers to the sum of all assets owned by the company, including current assets and long-term assets.

Asset-liability ratio is an important index to measure the debt level and risk degree of enterprises. From the creditor's point of view, the lower the debt ratio, the better, the greater the guarantee for enterprises to repay their debts, and the loan will not be too risky.

Extension: formula analysis

1. The asset-liability ratio, also known as the debt operation ratio, is an indicator to measure the ability of an enterprise to use the funds provided by creditors to conduct business activities and reflect the security of creditors' loans. By comparing the total liabilities and total assets of an enterprise, it is concluded that it is the debt ratio reflected in all assets of the enterprise, that 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.

2. Total liabilities refer to the current obligations formed by past transactions, the performance of which is expected to lead to the outflow of economic benefits from the enterprise, including current liabilities and long-term liabilities. Among them, long-term liabilities refer to debts with repayment period exceeding one year or one business cycle, and total liabilities are filled out according to the balance of total liabilities disclosed in the balance sheet of the current audit report of the enterprise.

3. Total assets refer to the total assets in the balance sheet of an enterprise, as well as the resources formed by past transactions of the company and owned or controlled by the enterprise. Total assets refer to all assets owned or controlled by an enterprise, including current assets, long-term investments, fixed assets, intangible assets, deferred assets and other long-term assets.