Debt ratio, Financial Management

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What is the Debt Ratio? Describe please.


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2/14/2013 3:07:45 AM

Debt ratio

A ratio that points out what proportion of debt a company has relative to its assets. The measure gives a thought to the leverage of the company with the potential risks the company faces in terms of its debt-load.

Debt Ratio = Total Debt / Total Assests

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