Debt ratio

Debt Ratio
For a company, the debt ratio indicates the relationship between capital supplied by outsiders and capital supplied by shareholders. Often the debt ratio is computed as total debt (both current and long-term) divided by total assets.

Debt Ratio
The debt ratio is the ability to pay a property's monthly mortgage payments from cash profits made from rental properties.

debt ratio
The ratio of total liabilities to total assets. For example, a company with total assets of $800,000 and total liabilities of $200,000 will have a debt ratio of 0.25 to 1, or 25% ($200,000 divided by $800,000).

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 ...

DEBT RATIOS - Ratios that show the extent to which the firm is financed by debt.
DEBT RELIEF - Reducing the principal and/or interest payments on Less developed country loans.
DEBT RETIREMENT - The complete repayment of debt. See: Sinking fund.

Long-term debt ratio
The ratio of long-term debt to total capitalization.
Similar financial terms
Long-term bonds
Bonds with a maturity of more than 12 years.

Debt ratio
Less than one

The first calculation to determine whether you can afford a car is that of your debt ratio, which shows the percentage of debt to assets you own. Take your total debt and divide that number by your assets.

Debt Ratios. Financial ratios used to indicate the extent debt is being used by a company as a source of capital. Examples include, Debt to Equity, debt to total assets, and fixed charge coverage. Debt ratios are typically important to lenders.

Debt ratio:
The ratio of a company's long-term liabilities (debts) to its total long-term capital employed, i.e. debt plus Equity. See also Gearing.
Français: Coefficient, Ratio d'endettement
Español: Coeficiente de endeudamiento ...

Debt Ratios
Ratios that indicate how much debt is being used and how the resulting leverage relates to a company's operations. A high ratio indicates higher risks and possibly higher returns.

Debt Ratio
The percentage of debt that is used in the total capitalization of a
company. It is calculated by dividing the total book value of the
debt by the book value of all assets.

Debt ratio
Total debt divided by total assets.
Debt relief
Reducing the principal and/or interest payments on Less developed country loans.
Debt retirement ...

Debt ratio: Also known as the debt-to-equity ratio, debt ratio is a tool that helps investors decide whether the amount of debt a company has is acceptable for a company of its size.

Debt Ratio
The ratio of the issuer's general obligation debt to a measure of value, such as real property valuations, personal income, general fund resources, or population.

Debt Ratios
Financial ratios that show how well the company can deal with its debt obligations.
Debt/Equity Ratio ...

Debt Ratio
The extent to which a company's total assets are financed with borrowed funds (ie. borrowings divided by total assets). An important financial statistic.

Total debt ratio (TDS) (Real Estate):
The percentage of gross annual income required to cover payments associated with housing and all other debts and obligations, such as payments on a car loan.
Top-Down: ...

Gross Debt Ratio
The ratio of the monthly housing payment in total (PIT -- Principal, Interest and Taxes) divided by the gross monthly income. This ratio is sometimes referred to as GDS.

Debt Ratio
A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.

Mortgage debt ratio lender?
What is mortgage insurance payout ratio?
When is mortgage considered high ratio in Canada 20 or 25?
» More ...

Long-term debt ratio
Long-Term Anticipation Securities (LEAPS)
Long-term financial plan ...

The loan to debt ratio is usually calculated on the basis of your PITI payment and your gross monthly income.

ratio
long-term debt ratio
accounts receivable turnover
performance analysis
uniform bank performance report ...

Back End Ratio (debt ratio): a ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income.

Current cash / debt ratio - Measures ability to pay current liabilities in given year with cash derived from operating activities. Calculated using net cash from operating activities divided by average current liabilities.

debt ratio This ratio shows the extent to which a company relies on debt to finance assets.... debt retirement The repayment of a debt. debt security From the issuer's perspective, a debt security is a method of raising capital....

Debt ratio: A method of determining the indebtedness of a business. Calculated by dividing total li¬abilities by total assets.
Depreciation: Cost of fixed asset deductible proportionately over time.

If the assets are very liquid in nature (easily converted to cash), then the Book Value may be relatively reliable even with a high debt ratio.

Days sales outstanding ratio
Debt ratio
Debt service coverage ratio
Debt service ratio
Debt-to-capital ratio
Debt-to-equity ratio
Debt-to-GDP ratio
Debt-to-income ratio
Debtor collection period ...

Gearing: (a) Borrowing specifically to fund an investment, e.g. to buy shares or purchase a house using a mortgage, or (b) A measure of the debt ratio, which is the amount of borrowing compared with the equity in an asset.

Return on assets and return on equity, as measures of firm profitability
Total revenue, as proxy for firm size
The firms' beta, as proxy for firm risk
Equity to debt ratio, as measure of leverage in book terms ...

It shows the relationship between funds provided by creditors and funds provided by shareholders, and is an indication of leverage or gearing - the use of debt to increase returns. Not the same as debt ratio.

Beginning with the Second LibertyLoan Act of 1917, the nature of the limitation was modified until, in 1941, it developedinto an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.Debt ratioTotal debt ...

Most frequently used performance indicators are: Net Present Value (NPV), Internal Rate of Return (IRR), ROE (Return on Equity), ROI (Return on Investment), the financial autonomy index (long-term debt / equity) and the debt ratio.
Bibliography ...

Long-term debt ratio The ratio of long-term debt to total capitalization. Long-term financial plan Financial plan covering two or more years of future operations.

See also: Long-term debt ratio, Internal rate of return, Return On Equity, Payment-in-kind, Risk-adjusted return