debt management ratio

(redirected from Debt Management Ratios)

Debt Management Ratio

A ratio of a company's debt to its total financing. The debt management ratio measures how much of a company's operations comes from debt instead of other forms of financing, such as stock or personal savings. The debt management ratio is one measure among many of a company's risk and likelihood of default. See also: Debt ratio, Debt-to-equity ratio.

debt management ratio

A measure of the extent to which a firm uses borrowed funds to finance its operations. Owners and creditors are interested in debt management ratios because the ratios indicate the riskiness of the firm's position. See also debt ratio, debt-to-equity ratio, fixed-charge coverage.
References in periodicals archive ?
Debt management ratios - how the firm uses debt financing or financial leverage.