Finance Formulas / July 18, 2018 / Cecelia Weiss
A lower debt ratio usually implies a more stable business with the potential of longevity because a company with lower ratio also has lower overall debt. Each industry has its own benchmarks for debt, but .5 is reasonable ratio.
A down payment is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment typically represents only a percentage of the full purchase price; in some cases, it is not refundable if the deal falls through. In most cases, the purchaser makes financing arrangements to the cover the remaining amount owed to the seller.
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