bond ratio

Bond ratio

The percentage of a company's capitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity. See: Debt-to-equity-ratio.

Bond Ratio

One of many measures of a company's leverage. A bond ratio is calculated by taking the value of a company's bonds and dividing by the quantity of its long-term debt and its stockholder equity. A lower bond ratio indicates that a company has less debt and is therefore less risky to investors. An exceptionally high bond ratio may indicate that the company has too much debt.

bond ratio

The proportion of a firm's long-term financing that is represented by long-term debt. A bond ratio is calculated by dividing a firm's total outstanding debt by its long-term debt and owners' equity. Compare debt ratio. See also common stock ratio.