debt management ratio

debt management ratio definition - business

debt management ratio

A measure of the extent to which a firm uses borrowed funds to finance its operations. Owners and creditors are interested in debt management ratios because the ratios indicate the riskiness of the firm's position. Also called debt coverage. See also debt ratio, debt-to-equity ratio, fixed-charge coverage.

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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