You own a football team. The team's assets are things like the stadium, training facilities, and players – these are valuable resources the team owns. The team also has debts, like loans taken out for building the stadium or purchasing equipment.

The Debt/Asset Ratio is like measuring the team's financial strategy by comparing what it owes (debt) to what it owns (assets).

Debt: This is like the financial obligations your team has. In business, it refers to all the money the company owes to others – loans, bonds, mortgages, etc.

Assets: In the case of your football team, assets include the stadium, training grounds, players under contract, and any other property or equipment. For a business, assets encompass everything it owns that has value.

Ratio Calculation: To find the Debt/Asset Ratio, you divide the team's total debts by its total assets. For instance, if your football team has debts worth $10 million (for the stadium, players' contracts, etc.) and assets valued at $20 million (including the stadium's value, training facilities, etc.), the Debt/Asset Ratio is 0.5 ($10 million / $20 million).

This ratio tells you how much of the team's assets are financed by debt. A higher ratio means more of the team's assets are financed through borrowing, which can be riskier. In business, a lower Debt/Asset Ratio typically indicates a more financially stable company, as it relies less on debt and more on its own resources. However, the ideal ratio can vary by industry. Just like different sports teams have different ways of financing their operations, different industries have varying norms for using debt.