Posted inAll sectors / Finance & Control / Financial

Debt Ratio

Definition of this KPI:
The Debt Ratio is a financial metric that assesses a company's leverage and the proportion of its assets that are financed by debt. It provides insights into the company's overall financial risk and its reliance on debt financing as opposed to equity financing.


  • This KPI can be calculated as: Total debt / total assets
  • The KPI will be measured as: ratio (number)
  • How to interpret the KPI: depends on the goals
  • The strategic objective to measure with this KPI: Financial stability
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