`"Debt Ratio" = ( "Total Liabilities" )/( "Total Assets" )`

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The debt ratio is a solvency ratio used along with other financial leverage ratios to measure a company's total liabilities as a percentage of its total assets.  A lower debt ratio implies a more stable business with better longevity due to lower overall debt. 

A debt ratio of 0.5 means that the company's liabilities are only 50% of its total assets.