debt/capitalization ratio Meaning in the Cambridge English Dictionary Cambridge dictionaries logo
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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 ​totalvalue of its ​shares. The ​measurementchanges as the ​value of the ​shares goes up and down: The ​debt/​capitalizationratio is a commonly used ​measure of the ​strength of a company's ​capitalstructure.
(Definition of debt/capitalization ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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