A debt burden ratio is a measure of how much debt a person or entity has in relation to their income or assets. It is calculated by dividing the total amount of debt by the total amount of income or assets. A high debt burden ratio can indicate that a person or entity is at risk of financial distress.
Debt burden ratios are used by lenders to assess the creditworthiness of borrowers. They are also used by investors to assess the risk of investing in a particular company or country. A high debt burden ratio can be a sign that a borrower is more likely to default on their loans, or that a company or country is more likely to experience financial difficulties.