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Finance Dictionary and Glossary of Investment Terms
The percentage of a company's capitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity. See: Debt-to-equity-ratio.
The percentage of a company's capitalization that is represented by bonds, equal to the total amount of bonds due after one year divided by that amount plus equity. Traditionally, a ratio of 30-40% or more is considered highly leveraged.