bond ratio(redirected from Bond Ratios)
The percentage of a company's capitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity. See: Debt-to-equity-ratio.
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One of many measures of a company's leverage. A bond ratio is calculated by taking the value of a company's bonds and dividing by the quantity of its long-term debt and its stockholder equity. A lower bond ratio indicates that a company has less debt and is therefore less risky to investors. An exceptionally high bond ratio may indicate that the company has too much debt.
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Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.