What Is The Debt Ratio?

1.	What Is The Debt Ratio?
Answer» The DEBT ratio is also known as the debt to asset ratio or the TOTAL debt to total assets ratio. The calculation of the debt ratio is: Total Liabilities divided by Total Assets. The debt ratio indicates the percentage of the total asset amounts stated on the balance sheet that is owed to creditors. A high debt ratio indicates that a corporation has a high LEVEL of FINANCIAL leverage. The debt ratio is also known as the debt to asset ratio or the total debt to total assets ratio. The calculation of the debt ratio is: Total Liabilities divided by Total Assets. The debt ratio indicates the percentage of the total asset amounts stated on the balance sheet that is owed to creditors. A high debt ratio indicates that a corporation has a high level of financial leverage.

Answer»

The DEBT ratio is also known as the debt to asset ratio or the TOTAL debt to total assets ratio.

The calculation of the debt ratio is: Total Liabilities divided by Total Assets.

The debt ratio indicates the percentage of the total asset amounts stated on the balance sheet that is owed to creditors.

A high debt ratio indicates that a corporation has a high LEVEL of FINANCIAL leverage.

The debt ratio is also known as the debt to asset ratio or the total debt to total assets ratio.

The calculation of the debt ratio is: Total Liabilities divided by Total Assets.

The debt ratio indicates the percentage of the total asset amounts stated on the balance sheet that is owed to creditors.

A high debt ratio indicates that a corporation has a high level of financial leverage.

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