Debt Load

The amount of debt or leverage that a company is carrying on its books. The amount of debt a firm is carrying can be found in the company's balance sheet, which most firms provide on a quarterly basis. Companies may incur this debt for numerous reasons such as expanding their business or making an acquisition.

A very useful insight into the financial health of a company is to compare the amount of debt a company is carrying to the assets or equity the company has. Dividing the total debt a company has by the total assets a company has gives what is called a debt ratio. A low debt ratio is usually a sign of a healthy company.


Investment dictionary. . 2012.

Look at other dictionaries:

  • debt load — ➔ load1 * * * debt load UK US noun [C, usually singular] ECONOMICS, FINANCE ► the amount of debt that a person, company, or country has, especially in relation to their ability to pay it back: »carry/cut/reduce a debt load a crushing/heavy/high… …   Financial and business terms

  • debt burden — ➔ burden * * * debt burden UK US noun [C or U] (also debt load) ► ECONOMICS, FINANCE the amount of debt owed by a person, company, or country: »The EU is participating in the initiative to ease the debt burden of the highly indebted poorer… …   Financial and business terms

  • load — A sales charge paid by an investor in some mutual fund shares or annuities. The sales charge may be a front end charge, a back end charge, or a 12b 1 charge. Also, an expression used to describe a mutual fund that imposes sales charges on… …   Financial and business terms

  • load up on sth — UK US load up on sth Phrasal Verb with load({{}}/ləʊd/ verb ► FINANCE to get a lot of money, assets, or debt: load up on fees/credit/debt »People loaded up on debt from lenders who asked few questions of borrowers. »load up on stocks/shares …   Financial and business terms

  • Debt Fatigue — When a debtor stops making payments on his or her debts and starts spending again after being overwhelmed by the amount of debt incurred and the seeming futility of the debt repayment process (the overall amount of debt owed does not appear to… …   Investment dictionary

  • Debt Ratio — A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt load. A debt ratio of greater than …   Investment dictionary

  • Debt Loading — A practice employed by unscrupulous entrepreneurs and businesses who anticipate filing for bankruptcy. Debt loading works by taking on a debt load by spending all cash reserves, maxing out lines of credit and credit cards, and failing to pay… …   Investment dictionary

  • load down with — [phrasal verb] load (someone or something) down with (something) : to cause or force (someone or something) to accept or deal with (something difficult) usually used as (be) loaded down with The company is loaded down with debt. [=is burdened… …   Useful english dictionary

  • debt — noun 1 sum of money owed ADJECTIVE ▪ big, crippling, enormous, heavy, high, huge, large, massive, substantial ▪ …   Collocations dictionary

  • load sth up with sth — UK US load (sth) up with sth Phrasal Verb with load({{}}/ləʊd/ verb ► FINANCE to get a lot of money, assets, or debt, or to make someone else get them: » Private equity buyouts aim to load companies up with lots of debt. »A small independent… …   Financial and business terms

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