Industry Averages for Debt Ratio?

Answer Firm managers often use various financial ratios to gauge the health of the business. Comparing the ratios of the business with other firms in the same industry provides a reference point because n... Read More »

Top Q&A For: Industry Averages for Debt Ratio

What does debt ratio mean?

Debt ratio is an easy-to-calculate number that shows how much debt a company has, compared to its assets. A company with $1,000 in assets and $100 in debts has a debt ratio of 10 percent. The lower... Read More »

What is a debt ratio?

A debt ratio is a number calculated that shows a company's debt compared to their assets. This number is used for comparisons and by investors. A debt ratio is a common ratio used throughout all ty... Read More »

Can I get an FHA loan with a 53% debt ratio?

You will not be able to get an FHA loan with a debt ratio of 53 percent, as the maximum is 41 percent. The front-end ratio on an FHA loan, which calculates your current or future house payment, is ... Read More »

Debt-Service Ratio?

Financial institutions use many different tools to measure the associated risk of lending to a potential borrower. Although these assessments do not guarantee the creditworthiness of a customer, th... Read More »