Debt Ratio Calculator

The Debt Ratio measures the percentage of Short-Term Debt to Long-Term Debt, a useful way to uncover a company''''s reliance on short term or long term debt.

If Debt Ratio increases over time:

An increasing Debt Ratio is generally a negative sign, showing the company may not have been able to secure long-term, lower interest financing, instead having to secure short-term, higher interest short term financing.

If Debt Ratio decreases over time:

A decreasing Debt Ratio is generally a positive sign, showing the company may be paying off its Short-Term debt or possibly refinancing its Short-Term Debt into Long-Term Debt.

If Debt Ratio stays the same over time:

An unchanged Debt Ratio may indicate the company''s ability to aquire favorable financing has remained the same.