Seguros y pensiones para todos

Home > Glossary > Debt ratio

Debt ratio

The debt ratio measures the ratio of assets to accumulated debt. This financial ratio is used in business as well as in personal finance.

For example, when buying a house, financial institutions assess your debt ratio and also that of the house. The debt ratio they typically finance is 80% of the value of the house. This is the maximum percentage of the value of the property that they can lend you.