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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 noun from the Cambridge Business English Dictionary © Cambridge University Press)
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