The debt ratio is an indicator of a company's profitability.

Name: The debt ratio is an indicator of a company's profitability.
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The debt ratio is actually an indicator of a company's leverage, or the amount of debt it has relative to its assets. It does not directly measure profitability, although high levels of debt can affect profitability if the company is unable to make debt payments or if interest payments on debt consume a significant portion of the company's earnings.

The Debt Ratio Is an Indicator of a Company's Profitability