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


"debt/capital ratio" in Business English

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debt/capital rationoun [ C ]

also debt-to-capital ratio uk us 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)