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English definition of “debt/capitalization ratio”

debt/capitalization ratio

noun [C] (also debt-capitalization ratio, debt-to-capitalization ratio)
 
 
FINANCE a measurement of a company's ability to borrow and pay back money that is calculated by dividing the amount of debt that it owes by the total value of its shares. The measurement changes as the value of the shares goes up and down: The debt/capitalization ratio is a commonly used measure of the strength of a company's capital structure.
(Definition of debt/capitalization ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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