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Debt-to-income ratio

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Reference no: EM133141806

Another important ratio for a business (and an individual) is the Debt-to-Income Ratio. This ratio is helpful for showing a company has too much debt compared to income.

Personal basis: The recommended amount for individuals is 36% or less. If one is reaching or over 36%, one needs to set appropriate goals to help reduce or eliminate debt.

Reference no: EM133141806

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