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" ![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sD2O2hK1hZlL_ZsuVlbxwvxCnSI8kMonDXaRj1V2GTGbc4TwXLrWwgGbqsMgcSjZIN3GY1UGqBMfxHCN_5Xfxik33Z3FTrerkc8S5A9tgHwzfO-Fj-1jxrZ9NZpK7wefQIfJyaJw=s0-d) | 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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