Meaning of “debt capacity” in the English Dictionary

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"debt capacity" in Business English

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debt capacitynoun [ C or U ]

uk us

FINANCE a measurement of the amount of money that a person or company can borrow and pay back during a particular period without any financial difficulty:

Changes in revenue and interest rates can affect the value of a firm and its optimal debt capacity.

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