What is debt ratio
It is used to calculate how much risk a company has taken on.
A lower level of risk is preferred. It means that a more independent business is able to borrow less money and is thus more financially secure. These businesses will have low debt ratios (below 50%), which indicates that their majority of assets are fully owned (financed through their own equity, and not debt).
A business with high risks and high debt levels means it has taken on large amounts of risk. High debt ratios (above 50%) are often a sign that a company is "highly leveraged". This refers to the fact that most of its assets were financed with debt and not equity.
- https://www.twitch.tv/ibraheemkyle
- https://www.bloglovin.com/@ibraheemkyle/which-are-best-investment-platforms-accepting
- https://disqus.com/by/aliadham/about/
- https://www.goodreads.com/user/show/154010513-ibraheem
- https://independent.academia.edu/AliAdham7
- https://www.wikihow.com/User:Ali-Adham
- https://www.kickstarter.com/profile/1390192743/about
- https://www.buzzfeed.com/emptybottles1/which-are-best-investment-platforms-in-uk-5n1n1wrrmq
- https://www.wikihow.com/User:Ali-Adham
Comments
Post a Comment