Gældsgraden

Gældsgraden, often translated as debt ratio or leverage ratio, is a financial metric used to assess the extent to which a company or individual finances its assets through debt. It is typically calculated by dividing total liabilities by total assets. A higher gældsgrad indicates that a larger proportion of the entity's assets are financed by borrowed money, while a lower gældsgrad suggests greater reliance on equity financing.

This ratio provides insights into financial risk. A high gældsgrad can signal increased financial risk because a significant portion of assets is encumbered by debt obligations. This means that the entity may have difficulty meeting its debt payments, especially during periods of economic downturn or declining revenue. Conversely, a lower gældsgrad generally implies a more stable financial position and a greater capacity to absorb financial shocks.

The interpretation of gældsgrad varies across industries and depends on specific business models. Some industries, such as utilities or real estate, may naturally operate with higher debt levels due to the capital-intensive nature of their operations and stable cash flows. For these sectors, a higher gældsgrad might be considered normal. However, for industries with more volatile earnings, a lower gældsgrad is typically preferred. Lenders and investors frequently examine this ratio when making decisions about extending credit or investing in a company, as it is a key indicator of solvency and financial health.