Debt ratio definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Debt ratio is an indication of how much debt a company is holding, when compared to the value of its assets. It can also be applied to individuals: in which case it is the cost accrued by their debt compared to total income each year.

Debt ratio is derived by dividing total debt by total assets, and representing that figure as a percentage. 0% indicates that a company or individual has no debt or close to no debt, and 100% indicates that they have debt equal to total assets.

Typical debt ratios vary from industry to industry, with some businesses requiring large amounts of debt to function and some tending to remain relatively debt free.

Visit our analysis section

Find the debt ratios of different businesses using our  market screener.

Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day from 8am GMT Saturday to 10pm GMT Friday

+65 6390 5118

You can also email us helpdesk@ig.com.sg

Visit our storefront office at 9 Battery Road