A bank or other investor will consider a business solid if it has a debt ratio of

40%

50%

60%

70%

Question

Business

Jasmin Key

19 August, 16:06

A bank or other investor will consider a business solid if it has a debt ratio of

40%

50%

60%

70%

+1

Answers (2)

Know the Answer?

Dixie Wiley · Answer 1

40%

Explanation:

The debt ratio measures the percentage of total debt over total assets. This usually indicates how many assets were acquired through debt.

Usually a debt ratio of 40% or below is considered very healthy, good or solid. While a debt ratio of 50% or more is considered very risky, since the possibility of the business default is large.

Depending on the industry, debt ratios between 40-49% can be good or bad, but we were not given more information.

A bank or other investor will consider a business solid if it has a debt ratio of40%50%60%70%

A bank or other investor will consider a business solid if it has a debt ratio of

40%

50%

60%

70%