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Finance / July 7, 2018 / Alejandra Tanner

Because every bond and bond fund has a duration, those numbers can be a useful tool that you and your financial professional can use to compare bonds and bond funds as you construct and adjust your investment portfolio.

The debt-to-asset ratio, also known simply as the debt ratio, describes how much of a company's assets are financed by borrowed money. Investors consider it, among other factors, to determine the strength of the business, and lenders may base loan interest rates on the ratio. Mathematically, it is a simple calculation, whether you are looking at your own company or researching potential investments.

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