How to Calculate Debt Ratio for Accurate Financial Analysis
Debt ratio is an important financial metric that helps investors and analysts assess the financial health of a company. By calculating the debt ratio, stakeholders can determine the level of leverage a company has taken on. This information can be crucial in evaluating a company’s ability to repay its debts and can influence investment decisions. In this article, we will explore the concept of debt ratio and answer some common questions surrounding its calculation.
