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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.


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.

  1. Debt Service

    The cash that is required for a particular time period to cover ...
  2. Funded Debt

    A funded debt is a company's debt that will mature in more than ...
  3. Long-Term Debt

    Long-term debt consists of loans and financial obligations lasting ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements ...
  5. Net Debt

    A metric that shows a company's overall debt situation by netting ...
  6. Long-Term Debt To Capitalization ...

    A ratio showing the financial leverage of a firm, calculated ...
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