A debt ratio of 0.50 (50%)would mean that half of a company's assets would need to be sold to pay off all of its current liabilities.

Name: A debt ratio of 0.50 (50%)would mean that half of a company's assets would need to be sold to pay off all of its current liabilities.
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A debt ratio of 0.50 means that half of a company's assets are financed by debt, while the other half is financed by equity. It does not mean that half of the assets would need to be sold to pay off current liabilities.

A Debt Ratio of 0