What is a Debt Ratio and why it’s a Key Financial Metric
Debt RR
AUGUST 3, 2020
A high debt ratio indicates that a business used a lot of debt to fund operations while a low debt ratio highlights that more assets were purchased with equity than debt. Debt Ratio Formula. Difference Between the Debt-to-Equity Ratio? There are downsides to low debt-to-equity ratios though.
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