Description

The debt ratio is a financial metric that indicates the proportion of a company's total debt to its total assets. It is used to assess financial leverage and overall financial health, providing insight into how much of the company's assets are financed through debt.

Interpreter Notes

Interpreters should be aware that the term 'razón de deuda' is commonly used in formal financial contexts, while 'índice de deuda' may also be encountered. It is important to maintain a formal register and avoid colloquial expressions. Stick to the glossary terms to ensure clarity and accuracy.

Example Sentences

EN: The company's debt ratio has increased significantly over the past year, raising concerns among investors.

ES: La razón de deuda de la empresa ha aumentado significativamente en el último año, lo que ha generado preocupaciones entre los inversionistas.

Common Interpreter Mistakes

Confusing 'razón de deuda' with 'razón de liquidez'; misinterpreting 'índice de deuda' as a different financial metric; mixing up terminology due to regional variations.