debt ratio
Borrowed funds percentage
A debt ratio measures how much of an entity's assets or income is financed by debt.
For individuals, it typically compares monthly debt payments to gross income: Her debt ratio was too high to qualify for the mortgage.
For businesses, it shows total liabilities relative to total assets, indicating financial leverage and risk exposure.
- leverageBorrowed capital for amplified returns
- solvencyCapacity to pay debts
- liabilitiesAmounts owed to others
- assetsOwned items of value
- creditworthinessAbility to repay debts
balance sheet · credit score · equity · borrowing · financial health · overleveraged · in the red · insolvency · collateral · interest rate · default · loan shark · interest · principal · balance due · cash flow · lender · creditor
- debtcreditor, owe, lender, unpaid, borrower
- financial termswealth, asset, currency, balance sheet, audit
- corporate financecost of capital, investment, capital markets, NPV, shareholder
- financial metricsROI, ROE, EPS, NPV, IRR
- investingstocks, stock, bonds, investing, investor
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance