From a lender's point of view, a high ratio of debt to total assets is desirable.

Name: From a lender's point of view, a high ratio of debt to total assets is desirable.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

A high ratio of debt to total assets indicates that a company is heavily financed by debt rather than equity, which can be seen as riskier by lenders, as it suggests a higher financial leverage and potentially lower financial stability.

From a Lender's Point of View, a High Ratio of Debt