See how much of FastForward's assets its creditors financed, versus its owners.
Debt ratio = $9,200 ÷ $42,470 = 21.7%
The divides total liabilities by total assets. It answers one question: how much of what a company owns came from creditors instead of owners?
FastForward's ratio is 21.7% — about 22 cents of every dollar of assets is financed by debt, the rest by the owners. A higher ratio means more of the company is financed by creditors, which means more risk if revenue slows.