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The debt ratio, calculated by dividing total liabilities by total assets, measures the proportion of a company's assets financed by debt.
- A higher ratio indicates greater leverage and financial risk, while a lower ratio suggests a more conservative financial structure.
- This ratio is crucial for investors and creditors to assess the company's financial stability and risk profile.
- It provides insights into the company's ability to meet its debt obligations and sustain long-term operations.


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