debt ratio
noun[C]
ukusECONOMICS
thevalueof thegoodsandservicesthat acountryproduces,comparedwith theamountofdebtit has, used as a way ofmeasuringhowsuccessfultheeconomyof aparticularcountryis:
In somecountriesdebtratiosexceed100% ofGDP.
FINANCE
ameasurementof a company'sabilitytoborrowmoneyandpayit back, that iscalculatedbydividingthetotalamountof allkindsofdebtthat isowedby theamountthatshareholdershaveinvested. Thismethodcan be used byinvestorstodecidewhether or not toinvestin acompany:
Thecompanyhas ahealthybalancesheet, withstrongcashflowandlowdebtratios.