Debt Load

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DEFINITION of 'Debt Load'

The amount of debt or leverage that a company is carrying on its books. The amount of debt a firm is carrying can be found in the company's balance sheet, which most firms provide on a quarterly basis. Companies may incur this debt for numerous reasons such as expanding their business or making an acquisition.

BREAKING DOWN 'Debt Load'

A very useful insight into the financial health of a company is to compare the amount of debt a company is carrying to the assets or equity the company has. Dividing the total debt a company has by the total assets a company has gives what is called a debt ratio. A low debt ratio is usually a sign of a healthy company.

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