ELI5: Explain Like I'm 5

Debt-to-capital ratio

Debt-to-capital ratio is a way to measure how much debt (money you owe) a company or organization has compared to how much money they have on their own (their capital). The ratio is calculated by dividing the total amount of the company's debt by their total capital. The higher the debt-to-capital ratio, the more money the company owes and the more risky their business operations might become.
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