How to Calculate Debt to Total Capitalization in Xero
Making the most of your Xero data
What is Debt to Total Capitalization?
Debt to Total Capitalization is a ratio that measures the percentage of a company's debt to its total capitalization.
This ratio is used to determine how much debt a company has taken on, and how much equity it has.
The higher the debt to total capitalization ratio, the more debt the company has taken on.
The lower the debt to total capitalization ratio, the more equity the company has.
How do you calculate Debt to Total Capitalization in Xero?
It can be difficult to calculate Debt to Total Capitalization directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Debt to Total Capitalization.
What is Causal?
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Debt to Total Capitalization. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
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Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Debt to Total Capitalization.
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