Stella Corp. has a debt ratio that is significantly higher than industry, indicating that they are better at paying off debt than their competitors.

Question

Quizplus · Accepted Answer

A high debt ratio means that a company has a higher amount of debt relative to its assets, which can imply a higher financial risk. Therefore, if Stella Corp. has a debt ratio significantly higher than the industry, it may indicate that they are not as good as their competitors at paying off their debts.