Meaning of “debt/asset ratio” in the English Dictionary


"debt/asset ratio" in Business English

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debt/asset rationoun [ C ]

also debt-assets ratio, debt-to-assets ratio uk us

FINANCE a measurement of how financially successful a company is, that is calculated by dividing the total amount of a company's debts by the value of its assets:

If a company's debt/asset ratio is low, it means that its assets are financed more through equity than by debt.

(Definition of “debt/asset ratio” from the Cambridge Business English Dictionary © Cambridge University Press)