Debt management ratios measure: how effectively a company is using its cash, how well a company is using debt versus equity position, a companys ability to earn profit, a companys ability to meet payable obligations

Debt management ratios measure on how well a company is using debt versus equity position. The firm or company uses financial leverage ability to avoid financial distress in the long run. This Debt can improve stockholders in good years and increase their losses in bad years.