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English definition of “debt/capital ratio”

debt/capital ratio

noun [C] (also debt-to-capital ratio)
 
 
(abbreviation D/C ratio)
FINANCE a company's debt as a percentage of its capital as a whole, used to calculate if it has borrowed too much, if it can borrow more, etc.: The company has a financial policy of maintaining a net debt/capital ratio which does not exceed 45%.
(Definition of debt/capital ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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