The debt ratio is an indicator of a company's ability to incur more debt.

Name: The debt ratio is an indicator of a company's ability to incur more debt.
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The debt ratio measures the percentage of a company's assets that are financed by debt. A high debt ratio indicates that a company has a lot of debt relative to its assets, which could make it more difficult for the company to take on additional debt. Therefore, the debt ratio is an indicator of a company's ability to incur more debt.

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