bond ratio

bond ratio definition - business

bond ratio

The proportion of a firm's long-term financing that is represented by long-term debt. A bond ratio is calculated by dividing a firm's total outstanding debt by its long-term debt and owners' equity. Compare debt ratio. See also common stock ratio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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