Xero (ASX:XRO) LT-Debt-to-Total-Asset: 0.09 (As of Mar. 2026)

Xero ASX:XRO +1.77% 76 LT-Debt-to-Total-Asset is 0.09 as of Mar. 2026. GuruFocus rates ASX:XRO with a GF Score™ of 76/100 and a GF Value™ of A$195.57 (Possible Value Trap). The stock has 7 warning signs investors should review.

LT Debt to Total Assets is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligationdivide by its Total Assets. Xero's long-term debt to total assests ratio for the quarter that ended in Mar. 2026 was 0.09.

Xero's long-term debt to total assets ratio increased from Mar. 2025 (0.02) to Mar. 2026 (0.09). It may suggest that Xero is progressively becoming more dependent on debt to grow their business.

Xero (ASX:XRO) LT-Debt-to-Total-Asset Explanation

LT Debt to Total Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Xero LT-Debt-to-Total-Asset Related Terms

Xero LT-Debt-to-Total-Asset Historical Data

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The historical data trend for Xero's LT-Debt-to-Total-Asset can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Xero LT-Debt-to-Total-Asset Chart

Xero Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

LT-Debt-to-Total-Asset

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0.43

0.45

0.41

0.02

0.09

Xero Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
LT-Debt-to-Total-Asset	Get a 7-Day Free Trial															0.41	0.03	0.02	0.01	0.09

76GF Score

Xero Ltd ASX:XRO

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Xero LT-Debt-to-Total-Asset Calculation

Xero's Long-Term Debt to Total Asset Ratio for the fiscal year that ended in Mar. 2026 is calculated as

LT Debt to Total Assets (A: Mar. 2026 )	=	Long-Term Debt & Capital Lease Obligation (A: Mar. 2026 )	/	Total Assets (A: Mar. 2026 )
	=	694.209	/	7585.564
	=	0.09

Xero's Long-Term Debt to Total Asset Ratio for the quarter that ended in Mar. 2026 is calculated as

LT Debt to Total Assets (Q: Mar. 2026 )	=	Long-Term Debt & Capital Lease Obligation (Q: Mar. 2026 )	/	Total Assets (Q: Mar. 2026 )
	=	694.209	/	7585.564
	=	0.09

Frequently Asked Questions Learn more about LT-Debt-to-Total-Asset →

What does a LT-Debt-to-Total-Asset of 0.09 mean?

Xero (ASX:XRO) has a LT-Debt-to-Total-Asset of 0.09 as of Mar. 2026. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on Xero and its competitors.

Is Xero's LT-Debt-to-Total-Asset too high?

Xero's current LT-Debt-to-Total-Asset is 0.09. Overall, Xero has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Xero's LT-Debt-to-Total-Asset compare to CRM and SHOP?

Xero's LT-Debt-to-Total-Asset of 0.09 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good LT-Debt-to-Total-Asset for a Software company?

A good LT-Debt-to-Total-Asset depends on the Software industry context. However, LT-Debt-to-Total-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high LT-Debt-to-Total-Asset mean?

A high LT-Debt-to-Total-Asset can signal that a stock is expensive relative to its fundamentals. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on Xero and its competitors. Xero's current LT-Debt-to-Total-Asset is 0.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Xero stock overvalued right now?

Based on GuruFocus' analysis, Xero (ASX:XRO) is currently considered Possible Value Trap. The stock's GF Value™ is A$195.57, compared to a current price of A$69.05 — trading 64.7% below its estimated fair value. The current LT-Debt-to-Total-Asset is 0.09. Xero's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is LT-Debt-to-Total-Asset calculated?

LT-Debt-to-Total-Asset is calculated from a company's financial statements. For Xero (ASX:XRO), the current LT-Debt-to-Total-Asset is 0.09 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$69.05 is trading 64.7% below its estimated GF Value™ of A$195.57. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

LT-Debt-to-Total-Asset: 0.09
GF Value™: A$195.57 vs. price of A$69.05 (64.7% below fair value)
GF Score™: 76/100 with 7 warning signs

No single metric tells the full story. See the ASX:XRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Xero Business Description

Industry Technology Software

Comparable Companies ASX:WTC ASX:TNE ASX:NWL ASX:PXA ASX:IRE ASX:BVS ASX:OCL ASX:SDR ASX:HSN ASX:C79 XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges XROLF:USA 0XE:Germany

Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011

Website https://www.xero.com

Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.

76GF Score

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LT-Debt-to-Total-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$69.05

Price

A$195.57

GF Value

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