What is a good or safe range for a company's debt ratio (liab/assets)?
submitted by Ophelia Payne

ifitsnotonething

I think a debt ratio around 0.4 or 40% is pretty safe for most companies. It means they're not relying too much on borrowing, which is good for stability. But it can vary depending on the industry!

cryin_in_the_mud

A typical safe range for a debt ratio is between 0.3 and 0.5. Going higher than 0.6 might start to introduce more financial risk, especially if earnings are volatile. You'll want to look at your industry specifically though.

petey

A debt ratio below 50% is generally considered safe because it indicates the company isn't overly leveraged. However, some industries, like utilities or real estate, tend to have higher ratios. In those cases it might be safe to say 60-70%. It really does depend on the industry.