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


"debt/capitalization ratio" in Business English

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debt/capitalization rationoun [ C ]

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

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)