Debt ratio
Debt ratio is the ratio of total liabilities to total assets, it measures the percentage of funds provided by creditors.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Debt ratio. The ratio of total liabilities to total assets, it measures the percentage of funds provided by creditors.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Debt ratio. Ratio of total liabilities to total assets. It shows the proportion of a company's assets that is financed with debt.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
