## What does debt ratio indicate?

A debt ratio measures the amount of leverage used by a company in terms of total debt to total assets. This ratio varies widely across industries, such that capital-intensive businesses tend to have much higher debt ratios than others. A company’s debt ratio can be calculated by dividing total debt by total assets.

## What race is more in debt?

Just over three-quarters (77.7 percent) of families with white, non-Hispanic heads reported having debt, while 72.2 percent of families with a Hispanic head, 74 percent with a Black/African American head, and 77.6 with other heads did so.

Which race has the most credit card debt?

Average credit card debt by race White Americans have average credit card debt of \$6,940, the most of any racial group.

What is a good debt ratio in percentage?

What is an ideal debt-to-income ratio? Lenders typically say the ideal front-end ratio should be no more than 28 percent, and the back-end ratio, including all expenses, should be 36 percent or lower.

### How do you figure debt ratio?

To find the debt ratio for a company, simply divide the total debt by the total assets. Total debt includes a company’s short and long-term liabilities (i.e. lines of credit, bank loans, and so on), while total assets include current, fixed and intangible assets (i.e. property, equipment, goodwill, etc.).

### Is debt to asset ratio a percentage?

Also known as debt asset ratio, it shows the percentage of your company’s assets financed by creditors. Bankers often use the debt-to-asset ratio to see how your assets are financed.

What demographic has the most debt?

Senior citizens remain the age demographic with the largest amount of outstanding debt, and have reduced it by the slowest rate since 2008 (just 6 percent), while 25-34 year-olds paid theirs off quickest, at a reduction rate exceeding 50 percent.

Who has most student debt?

Forty-three million Americans have student loan debt — that’s one in 8 Americans (12.9%), according to an analysis of May 2021 census data. Those ages 25-to-34 are the most likely to hold student loan debt, but the greatest amount is owed by those 35 to 49 — more than \$600 billion, federal data shows.

#### What’s the average credit score for black people?

677
Blacks, however, registered an average credit score of just 677….What the Credit Score Study Found.

Average FICO Score by Race
Race 2019 Average Score Classification
Black 677 Good
Hispanic 701 Good
Other 732 Good