The debt to tangible net worth ratio is a more conservative ratio than the debt ratio.

Name: The debt to tangible net worth ratio is a more conservative ratio than the debt ratio.
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The debt to tangible net worth ratio takes into account only tangible assets, such as property and equipment, which are less subject to valuation fluctuations than intangible assets. Therefore, it provides a more conservative measure of a company's debt levels compared to the debt ratio, which considers all assets.

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