what does the debt ratio tell u about the company
A debt ratio of greater than 100% tells you that a company has more debt than assets. Meanwhile, a debt ratio of less than 100% indicates that a company has more assets than debt. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's risk level.ebt Ratio. The debt ratio divides a companyâs total debt by its total assets to tell us how highly leveraged a company isâin other words, how much of its assets are financed by debt. The debt component ...