DEBT RATIO
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Definitions
There is 1 meaning of the phrase
Debt Ratio.
Debt Ratio - as a noun
A measure of a company's total debt to its total assets.
Example: "A debt ratio indicates how risky it would be for a bank to extend a loan to a company, with a higher ratio indicating great risk."
Example Sentences
"The company's debt ratio is 0.6, indicating moderate leverage."
"A high debt ratio can make it difficult for a company to obtain additional financing."
"By reducing expenses, the business was able to improve its debt ratio."
"Investors often look at the debt ratio when evaluating a company's financial health."
"The debt ratio is a useful tool for measuring a company's solvency."
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