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Finance Formulas / July 17, 2018 / Rory Wise

The debt ratio is a financial ratio that measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a company’s assets that are financed by debt.

Bonds form a significant portion of the financial market and are a key source of capital for the corporate world. Therefore every corporate finance course in the MBA program will introduce students to bonds at varying depth. We have provided a quick outline of what a student will need to know to understand bonds and the pricing or valuation of bonds which is the primary focus in the initial corporate finance program.

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