Definitions for

**"debt ratio"****Related Terms:**Debt to income ratio, Total debt ratio, Debt-to-income ratio, Back-end ratio, Debt-to-income-ratio, Debt-to-income, Debt coverage ratio, Debt service coverage ratio, Ratios, Tdsr, Credit ratio, Debt ratios, Debt service ratio, Total debt service ratio, Debt servicing ratio, Debt-service ratio, Qualifying ratios, Dcr, Back end ratio, Housing expenses-to-income ratio, Qualifying ratio, Interest coverage ratio, Back ratio, Housing expense ratio, Debt, Gross debt service ratio, Housing ratio, Front-end ratio, Income-sensitive repayment, Piti ratio, Housing expense-to-income ratio, Qualifying, Total expense ratio, Interest coverage, Interest expense, Debt service, Debt service coverage, Income sensitive repayment, Times interest earned, Defeasance, Debt financing, Ability to pay, Gearing ratio, Interest cover, Kicker, Savings ratio, Outstanding debt, Debt service, Federal debt

Debt capital divided by total assets. This will tell you how much the company...

debt capital divided by total capital. see also ratio.

A ratio which measures the amount of long term debt of a company. Calculated by dividing the total amount of outstanding bonds by the company's total capitalisation.

The ratio of a company's long-term liabilities (debts) to its total long-term capital employed, i.e. debt plus Equity. See also Gearing. Français: Coefficient, Ratio d'endettement Español: Coeficiente de endeudamiento

Total debts divided by equity capital. It is a measure of the level of indebtedness of the farm. In French usage, it is the ratio of total debts to total liabilities. See equity ratio.

Debt capital divided by total capital. ... Add a comment

The ratio of net operating income to debt service.

The amount of minimum debt or payments one must pay in relation to income earned. This ratio is calculated by dividing the amount of monthly debt payments by monthly income.

The amount of debt or payments one must pay in relation to the income made; based on the current bills (i.e., bills that must be paid — mortgage, car payment, etc.) versus the monthly income. The formula to compute the percentage is the amount of debt (i.e., expenses) divided by the amount of income.

Percentage of borrowers monthly income.

Monthly debt and housing payments divided by gross income. Also known as Back-End Ratio, Total Expense Ratio and Total Debt Ratio.

One of several financial calculations performed by your lender to determine if you can afford a particular monthly payment. The debt ratio (also known as the obligations ratio) is the sum of all your monthly debt payments including your total monthly mortgage payment divided by your total monthly income. Typically acceptable debt ratios for Conventional Loan are 36 - 38%, FHA Loans are 41 - 43%, and VA Loans Are 41%.

Also known as the debt-to-equity ratio, debt ratio is a tool that helps investors decide whether the amount of debt a company has is acceptable for a company of its size. To find a company's debt ratio, divide the company's long-term debt by the total shareholders' equity.

The difference between a persons monthly debts and that same persons monthly income, used by lenders to evaluate a borrowerâ€™s ability to pay mortgage payments.

Rratio of monthly outlays (bills) to monthly income.

Money owed divided by Income. Used to determine affordability.

This ratio is the total monthly obligation to stable gross monthly income. Debts to be included in this ratio include: Monthly Housing Expense (explained below), ALL monthly installment debts with more than 10 monthly payments remaining, child support or alimony, all revolving credit, any negative rental income from all investment properties the borrower owns. The Debt Ratio is calculated as follows: Total Monthly Obligations ÷ Stable Gross Monthly Income For most conventional loan programs, this ratio should not exceed 36 %.

Ratio of debt to gross income, often expressed as a front (housing payment only) or back (all debt) ratio. Example: $5,000 monthly income, $1,400 housing payment, $1,700 total debt would equal debt ratios of 28%/34%.

Total debt to total assets.

The total borrowings of a company divided by its capital employed.

An allowable percentage of monthly gross income which includes the proposed mortgage payment and any recurring debt.

To compare the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower. It evaluates the borrower's ability to pay mortgage. Also called Debt-to-Income ratio.

Monthly debt and housing payments divided by gross monthly income. Also known as Obligations-to-Income Ratio or Back-End Ratio.

The total amount of your monthly debt payments divided by your monthly pre-tax income. This is used to determine if your income is sufficient to pay for all of your debt and still have money left for your other expenses.

The amount of debt or payments one must pay in relation to the income earned. May be calculated based on the current monthly debt divided by gross monthly income.

Debt ratio is a measure of the amount of debt outstanding in relation to the amount of capital contributed by shareholders. Debt ratio is computed by dividing total liabilities by total assets.

Is the ratio of total debts divided by total assets of a company.

the ratio between gross monthly income and monthly long-term debt; used to determine financial qualification of a buyer.

Lenders use a debt ratio (also called debt-income ratio) to approve loan applicants. Debt ratio equals combined monthly debt payments divided by gross monthly income. For example, combined monthly debt payments of $2,000 divided by gross monthly income of $4,000 equals a debt ratio of 50%.

The relationship between a person's long term debt payments and their monthly income.

Proposed house payment plus monthly debts divided by gross monthly income.

The total amount of your monthly bills compared with the amount of your gross monthly income.

The ratio of all monthly payment obligations to gross income. Expressed as a percent.

This is a comparison between your total assets (gross income, money in the bank, equity in property, etc.) and total debts (credit cards, student loans, car loans, etc.).

The percentage of debt in relationship to a borrowerâ€™s monthly income, used to determine if the borrower is qualified for mortgage loans.

The percentage of the customers' gross monthly income allocated to pay the monthly installments on their debt owing. See also Back-End and Front-End .

Also known as Debt-to-Income ratio. A comparison of the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower, used to assess borrower's ability to pay mortgage.

A ratio used in underwriting that determines what percentage of gross monthly income is going to pay current monthly recurring debt plus the proposed housing expense for the new mortgage.

A calculation lenders use to determine if a borrower qualifies for a loan. The lender divides the borrower's monthly total debts (credit card payments, student loan payments, car payments, etc) and new house payment by the borrower's gross monthly income.

The comparison of a buyer's housing costs to gross or net effective income.

The measurement of how much of a company's total assets are financed with borrowed funds (ie. borrowings divided by total assets).

The ratio of Government debt to GDP

Total debt divided by total assets.

The total of all of the borrowers monthly payments including the proposed house payment ( PITI ), divided by the borrowers gross income.

Total Liabilities divided by Total Assets, indicates how much of the company is owed to creditors.

The total of the proposed monthly payments divided by the total monthly income.

The relationship between the borrowers long-term debt payments and the monthly income. The formula to compute the percentage is the amount of debt (i.e., expenses) divided by the amount of income.

Measure of firm's leverage position derived by dividing total debts to equity.

a borrower’s monthly payment obligations divided by gross monthly income.

Indicates the firm's debt level, or leverage. Total liabilities divided by total liabilities plus capital.

Calculated by dividing total assets by borrowings, highlighting how much of a company’s assets are financed by borrowings.

How much you earn compared with how much you owe. The lower your debt ratio, the more disposable income you have. You calculate it like this: Take the amount needed to repay debts each month, including rent or mortgage, and divide this by your gross pay (your pay before deduction of tax).

The ratio of the issuer's general obligation debt to a measure of value, such as real property valuations, personal income, general fund resources, or population.

Your earnings compared to how much you owe.

**Keywords:**principal

Principal