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How to Calculate Your Debt-to-Income Ratio Leverage ratios Instead, a correct debt-to-fairness ratio measurement depends on total equity. The debt ratio is a monetary ratio that measures the extent of a company’s leverage in terms of complete debt to complete assets. A ratio larger than 1 exhibits that a substantial portion of debt is funded by assets. A excessive ratio also signifies that a company could also be placing itself at a threat of default on its loans if interest rates have been to rise abruptly. A ratio under 1