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  Stock Market Basics 66: Debt Dependency Ratio Explained — How Much Does a Company Rely on Borrowed Money? 3-Line Summary The debt dependency ratio shows how much of a company’s total assets are funded by interest-bearing debt. Unlike the debt-to-equity ratio, it focuses more directly on borrowings that can create interest expenses and refinancing risk. Investors should read this ratio together with net debt, interest coverage, operating cash flow, and industry characteristics. Recommended Keywords debt dependency ratio, debt dependency ratio explained, debt ratio, borrowings to total assets, total borrowings, total assets, company debt analysis, financial statement analysis, balance sheet analysis, investing basics, stock market for beginners, interest coverage ratio, operating cash flow, financial health Table of Contents What Is the Debt Dependency Ratio? Debt Dependency Ratio Formula Why the Debt Dependency Ratio Matters Debt Dependency Ratio vs Debt-to-Equity Ratio Debt Depe...