A ratio that correlates to the reliance of certain equity on how well or how often debt is repaid. A common thought is that no firm or company should have a ratio that is higher than 60%. If the debt stops being repaid then the company could be in financial trouble.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser