The Project Gutenberg EBook of McGuffey's First Eclectic Reader, Revised. Edition, by William Holmes McGuffey. This eBook is for the use of anyone anywhere at no cost and with. almost no restrictions whatsoever. You may copy it, give it away or. re-use it under the terms of the Project Gutenberg License included. with this eBook or online at www.gutenberg.net. Title: McGuffey's First Eclectic Reader, Revised Edition.
It is a popular benchmark used in the measurement of an entity's (person or corporation) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan.
In general, debt should be between 50 and 80 percent of equity. Debt ratio: Debt/Total Assetsâmeasures the portion of a company's capital that is provided by borrowing. A debt ratio greater than 1.0 means the company has negative net worth, and is technically bankrupt.