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Debt-to-capital Ratio

Definition
A measurement of how leveraged a company is. The ratio compares a firm's total debt to its total capital. The total capital is the amount of available funds that the company can use for financing projects and other operations. It is calculated by dividing debt by the sum of debt and stockholders' equity. A high debt-to-capital ratio indicates that a high proportion of a company's capital is comprised of debt.

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