debt ratio

(redirected from Debt Ratios)

Debt ratio

Total debt divided by total assets.

Debt Ratio

A measure of a company's total debt to its total assets. A ratio less than one means that a company has more assets than debt, while a ratio of more than one means the opposite. A debt ratio is a measure of how risky it would be for a bank to extend a loan to a company, with a higher ratio indicating great risk.

debt ratio

The proportion of a firm's total assets that are being financed with borrowed funds. The debt ratio is calculated by dividing total long-term and short-term liabilities by total assets. Assets and liabilities are found on a company's balance sheet. For example, a firm with assets of $1,000,000 and $150,000 in short-term debts and $300,000 in long-term debts has a debt ratio of $450,000/$1,000,000 or 45%. A low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk. Compare bond ratio.
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The debt ratios of Burkina Faso, Ethiopia, Ghana, Mali, Mauritania, Rwanda, Tanzania and Uganda "have again surpassed the Bank's sustainability level of 150% debt-to-export ratio in the eight countries completing the programme".
Eight African HIPCs back in the red
But if the market continues to behave as if Italy will be bailed out, then a paradox arises: the higher Italy's debt ratio gets and the nearer Italy's situation comes to despair without a bailout, then the greater becomes the incentive for other countries to increase their debt ratios, since if there is an EU takeover of national debts (and that, to repeat, has always been an objective monetary union, so clearly stated by Delors), then countries with below-average debt ratios will lose out to those with above-average debt ratios.
Europe's Italy problem: and, as a result, are monetary union and the euro in serious trouble?
Moody's analysts also wrote: ``Los Angeles' debt profile would be weakened after secession, but even assuming the worst case - that the new, smaller Los Angeles would retain responsibility for all outstanding debt - most of its key debt ratios would still compare favorably to those of other major cities in the country.
MOODY'S SAYS L.A. FINANCIAL OUTLOOK STILL STABLE
Joines (1991) selects three public debt ratios for comparison and regards the 40 percent debt ratio as the long-run historical average.
In search of an optimal debt ratio for economic growth
The total debt ratio (5) is the sum of domestic and foreign debt ratios.
Government debt model
The district is consistently the fastest growing in the state, and operating and capital needs continue to pressure finances and keep debt ratios high.
Fitch Rates Frisco ISD, Texas $96.5MM GOs 'AAA' PSF; 'A' Underlying
We find that firms substantially reduce their debt burden in "fresh-start" Chapter 11 reorganizations, yet they emerge with higher debt ratios than what is typical in their respective industries.
Financial restructuring in fresh-start Chapter 11 reorganizations
The rating also takes into consideration moderately high debt ratios, a slowing amortization rate, and operating/capital pressures associated with more rapid enrollment growth expected over the near term.
Fitch Rates Waxahachie ISD, TX GO Bonds 'AAA' PSF/'A' Underlying
Based on increased revenues and EBITDA, debt ratios are expected to improve in fiscal 2006.
Fitch Rates YMCA of Greater New York $34.7MM 2007 Rfdg Rev Bonds 'BBB+'
Moreover, capital needs are being financed with additional debt, thereby increasing the already high direct debt ratios.
Fitch Rates Cypress-Fairbanks ISD, Texas' $243.7MM Rfdg GOs 'AAA' PSF/'AA-' Underlying
Debt ratios are low and should remain so given the county's growing tax base, manageable capital needs, and rapid principal amortization.
Fitch Rates Suffolk County, New York $225M TANs 'F1+'
Also incorporated into the rating are the district's proactive management practices, prospective growth in the North Lake area, and average debt ratios.
Fitch Rates Coppell ISD, Texas' GOs Bonds 'AAA' PSF/'AA-' Underlying; Outlook Positive

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