Debt Ratio A financial ratio that measures the extent of a company's or consumer's leverage. The debt ratio is defined as the ratio of total - long-term and short-term - debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a company's assets that are financed by debt. Also referred to as the debt-to-assets ratio. Breaking It Down: The higher this ratio, the more leveraged the company is, implying greater financial risk. At the same time, leverage is an important tool...
Related to "Debt Ratio" | Debt Ratio - Video The debt ratio divides a company's total debt by its total assets to show how highly-leveraged the company is... | |
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