Tuesday, September 22, 2015

Term of the Day: Debt Ratio

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September 22, 2015
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:

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Related Definitions

Acid-Test Ratio
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Past Terms of the Day

Current Ratio
Maintenance Margin
Return On Invested Capital - ROIC
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