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Definition of Debt Ratio

Definition: What is Debt Ratio?

The debt ratio is the solvency ratio which use to measure the total liabilities of the company as a percentage of total assets of the company.

Definition of Debt Ratio

This ratio measures the ability of the company to show how well a company can pay liabilities with its assets. In simple word, it shows that how much assetsĀ the company needs to sell in order to pay its all liabilities. You can learn aboutĀ Debt Ratio Formula.

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