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Home > QFINANCE Dictionary > Definition of debt ratio

Definition of

debt ratio

Finance

relationship between firm's debts and assets the debts of a company shown as a percentage of its equity plus loan capital

Recommended Further Reading (Term count)
  • Seychelles
  • Debt/Capital Ratio
    The percentage of total funding represented by debt.
  • Capital Structure: A Strategy that Makes Sense
    by John C. Groth
    Perfect capital markets enjoy an array of assumptions, including no cost to bankruptcy, infinitely divisible financial assets and liabilities, no transaction costs, etc. Pursuing a selected optimal capital structure would allow minute adjustments, the issuance or redemption of small amounts of capital, and other conveniences. We would simply strive for the optimal debt/equity ratio depicted in Figure 1. Indeed, in this unreal world one would...
  • Measuring Gearing
    This checklist outlines how gearing is used as an indicator of ability to service debt.

Definitions of ’debt ratio’ and meaning of ’debt ratio’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’debt ratio’ and other financial terms with our online QFINANCE Financial Dictionary.

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