The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, the ratio shows how much of a company’s operations are funded by debt.

Accurately defining and computing restrictions on indebtedness is critical to assessing a business’s compliance with debt covenant ratios. Many indentures contain covenants that rely on financial ...

The debt-to-equity (D/E) ratio is a financial metric that measures a company's financial leverage by comparing its total debt to shareholders' equity. It indicates how much debt a company uses to ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Debt coverage ratio shows a company's ability to pay its debts. The debt coverage ratio compares the cash flow the company has to the total amount of debt the company must still repay. A debt coverage ...

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A debt-to-equity ratio measures the amount of debt a company uses to fund its business for every dollar of equity it has. The debt-to-equity ratio formula is: Total liabilities divided by total ...

Healthy business debt is often necessary for growth. Learn how to distinguish good and bad business debt and determine a ...

Are you a small business owner? Maybe you’re just flirting with the idea of starting your own side hustle and want to understand your profit potential. Calculating your debt-to-equity ratio is one of ...

Your debt-to-income ratio or DTI represents the amount of your income that goes to debt repayment each month. So why does that matter? For one thing, debt to income can be an important factor in ...

The lower the DTI for a mortgage the better. Most lenders see DTI ratios of 36 percent or less as ideal. It is very hard to get a loan with a DTI ratio exceeding 50 percent, though exceptions can be ...