Debt Ratios and Balance-Sheet Measures

Debt ratio pages connect borrowing levels to income, equity, cash flow, or balance-sheet classification. Use this section for leverage and capacity measures.

In this section

• Cash Flow to Total Debt Ratio: How Much of the Debt Load Annual Cash Flow Can Cover
  The cash-flow-to-total-debt ratio compares operating cash generation with total debt to assess repayment capacity.
• Current Portion of Long-Term Debt: An Essential Concept in Finance
  Current portion of long-term debt is the amount of long-term borrowing due within one year and reported as a current liability.
• Debt-to-Capital Ratio: The Share of Permanent Capital Funded by Debt
  Debt-to-capital ratio measures how much of a company's permanent capital structure is funded by debt rather than equity.
• Debt-to-Equity (D/E) Ratio: The Shorthand Version of a Core Leverage Metric
  Debt-to-equity ratio compares debt financing with shareholder equity to assess leverage and capital-structure risk.
• Debt-to-Income Ratio
  Borrower affordability ratio comparing debt obligations with income, widely used in consumer and mortgage underwriting.