Debt Ratio

What is a debt ratio?

Debt Ratio Definition: A debt ratio measures the amount of debt to assets or the total debts to assets for a company or individual. This figure is often presented as a percentage or decimal and is used to determine whether a borrower can afford to repay a loan.

If the ratio is high, it indicates the company or person is likely to face difficulties in repayment. A low ratio is a positive sign that a borrower will have no challenges in making payments in full.

Jul 30 - Comparewise Mortgage Banner

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