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What is a Debt Ratio and why it’s a Key Financial Metric

Debt RR

As with the debt ratio, a good debt-to-equity ratio varies depending on several factors, one of which is the industry. It’s not uncommon for capital-intensive industries, like manufacturing and finance, to have high ratios compared to other industries. There are downsides to low debt-to-equity ratios though. A ratio of 2.0