Debt ratio
The debt ratio measures the share of the balance sheet financed by debt, whether financial, trade, tax or social.
Formula
The codes are those of the National Bank of Belgium's annual-accounts formats; they are the ones Idonis uses for every company profile.
How to read it
It mirrors solvency: the two together come close to 100% (excluding provisions and deferred taxes).
A high ratio is not a problem in itself in sectors that borrow to invest (real estate, energy); it weighs more in services.
The nature of the debt matters: a long-term bank loan does not weigh like overdue supplier or social debts.
Debt ratio: medians of the main Belgian sectors
Computed by IdonisFor financial year 2024, in the sectors with the most companies: a quarter of companies below the 1st quartile, half below the median, three quarters below the 3rd quartile.
| Sector | 1st quartile | Median | 3rd quartile | Companies |
|---|---|---|---|---|
| Activities of head offices and management consultancy | 20.0% | 42.3% | 73.1% | 50,304 |
| Real estate activities | 28.0% | 64.3% | 93.5% | 49,349 |
| Specialised construction activities | 31.4% | 54.1% | 76.2% | 46,837 |
| Retail trade | 37.4% | 65.4% | 90.6% | 42,630 |
| Human health activities | 14.2% | 31.0% | 60.4% | 40,017 |
| Wholesale trade | 29.6% | 57.7% | 85.4% | 34,495 |
| Computer programming, consultancy and related activities | 20.1% | 40.4% | 71.1% | 25,827 |
| Financial service activities, except insurance and pension funding | 15.7% | 42.9% | 75.6% | 25,182 |
| Food and beverage service activities | 41.7% | 70.4% | 101.1% | 24,046 |
| Legal and accounting activities | 21.7% | 43.7% | 73.3% | 20,710 |
Medians computed by Idonis from annual accounts filed with the National Bank, all sizes combined. The same panel is the sector benchmark on every company page. Belgian companies by sector →
Frequently asked questions
How do I calculate the debt ratio of a Belgian company?
Divide total amounts payable (code 17/49) by total assets (code 20/58).
What debt ratio is normal?
It depends on the sector. The table on this page gives the median and quartiles of the main Belgian sectors.
Are the debt ratio and solvency linked?
Yes: what is not financed by debt is financed by equity. A 30% solvency usually goes with a debt ratio close to 70%.