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    Nov 10, 2012, 07:10 PM
    Solvency Ratio
    When a company's solvency or debt to total assets ratio is 72 % while another company's solvency or debt to total assets ratio is 121%. What does this mean?
    I know that the debt to total assets ratio is suppose to measure the percent of total financing provided by creditors rather than stockholders.
    But could someone explain the comparison between the two companies in layman's terms?

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