The Debt-to-Capital Ratio is a financial metric that measures a company's financial leverage. It is calculated by dividing a company's total debt by its total capital, which is the sum of the debt and equity. While the Debt-to-Equity Ratio focuses on the relationship between debt and equity, the Debt-to-Capital Ratio provides a more comprehensive view by considering the company's total capitalization, which includes both debt and equity. It shows how a company finances its overall operations and growth using different sources of funds.
Learn Debt-to-Capital Ratio with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Debt-to-Capital Ratio through hands-on practice and real-world examples.