From a creditor's point of view the higher the total debt to total assets ratio the lower the risk that the company may be unable to pay its obligations.

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From a creditor's point of view, the higher the total debt to total assets ratio, the higher the risk that the company may be unable to pay its obligations. High debt levels indicate a company is using a significant amount of its assets to finance its debt, which means it may have less available to use for paying off creditors.

From a Creditor's Point of View the Higher the Total