debt-to-capital ratio

Definition

A measurement of how leveraged a company is. The ratio compares a firm's total debt to its total capital. The total capital is the amount of available funds that the company can use for financing projects and other operations. It is calculated by dividing debt by the sum of debt and stockholders' equity. A high debt-to-capital ratio indicates that a high proportion of a company's capital is comprised of debt.

Use this term in a sentence

I did not like the debt-to-capital ratio and I thought it was a really interesting thing and needed to be paid attention to.

​ Was this Helpful? YES  NO 4 people found this helpful.

The debt-to-capital ratio was reported regularly and it seemed to be in favor of the company to refinance its current loans.

​ Was this Helpful? YES  NO 8 people found this helpful.

The debt-to-capital ratio was the primary metric or financial ratio we used to analyze the company's financial health and debt situation.

​ Was this Helpful? YES  NO 9 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
debtor-in-possession financing deceased alert