For Debt Ratio we have terms and definitions in 6 topics. The topics are Accounting, Economics, Finance, Financial Modeling, Foreclosure and Real Estate.

Debt Ratio (Accounting)

measures the percent of total funds provided by creditors. Debt includes both current liabilities and long-term debt. Creditors prefer low debt ratios because the lower the ratiothe greater the cushion against creditor's losses in liquidation. Owners may seek high debt ratioseither to magnify earnings or because selling new stock would mean giving up control. Owners want control while "using someone else's money." Debt Ratio is best compared to industry data to determine if a company is possibly over or under leveraged. The right level of debt for a business depends on many factors. Some advantages of higher debt levels are:

Debt Ratio (Economics)

In economic studies for organizations issuing stock, the ratio of debt to equity financing used for the project under analysis. An organization's current debt ratio value is generally used in studies.

Debt Ratio (Finance)

Total debt divided by total assets.

Debt Ratio (Financial Modeling)

Total Liabilities divided by Total Assets, indicates how much of the company is owed to creditors.

Debt Ratio (Foreclosure)

To compare the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower. It evaluates the borrower's ability to pay mortgage. Also called Debt-to-Income ratio.

Debt Ratio (Real Estate)

The relationship between a person's long term debt payments and their monthly income.

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