debt management ratio

Definition

The measurement of a company's total debt amount compared to its total financing amount. It provides information about how much of a business's operation stems from debt as opposed to other forms of financing including personal savings funds and stocks. The ration is used to measure a company's risk and the potential for default.

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You should always try to have the best debt management ratio possible and do your best to improve on yours.

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The debt management ratio would determine our next move and I was afraid that it would be something bad for us.

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The debt management ratio was a useful metric for examining how reliant the company is on debt to run its business.

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