A good debt ratio for a company is usually between 30 and 50% - more precisely around 40%. However, this general rule depends mainly on the sector of activity but also the size of the company. Keep in mind For example, when it comes to the sector of activity:A telecom company has to invest heavily to expand and maintain its infrastructure and network. It may be normal for such a company to have a debt-to-equity ratio close to 50% or even higher. On the other hand, an accounting company, for example, which invests less, will have a lower ratio - closer to 30%. Similarly, a large company will be more likely to invest than an SME or VSE. Thus, the debt ratio shows the dependence of a company on third-party lenders. The higher the ratio, the more dependent the company is, and the more likely it is to lose control of its finances and its decision-making power. The profitability of such a company can therefore be impacted. Conversely, a low debt ratio means independence and good financial health. Watch out! There is no one correct way to interpret debt ratio. Some banks and financial experts may think that a very high debt ratio is a sign of recent investment and an offensive strategy, while a very low ratio could demonstrate excessive caution and a reluctance to take risks.