debt/capitalization ratio
noun[C]
(alsodebt-capitalization ratio,debt-to-capitalization ratio)ukusFINANCE
ameasurementof a company'sabilitytoborrowandpaybackmoneythat iscalculatedbydividingtheamountofdebtthat itowesby thetotalvalueofitsshares. Themeasurementchangesas thevalueof thesharesgoes up and down:
Thedebt/capitalizationratiois acommonlyusedmeasureof thestrengthof a company'scapitalstructure.