At the same time, the strength of a company's debt repayment ability is the most sensitive indicator of debt management. From the perspective of debt repayment ability alone, the lower the debt ratio,

At the same time, the strength of a company's debt repayment ability is the most sensitive indicator of debt management. From the perspective of debt repayment ability alone, the lower the debt ratio, the stronger the company's debt repayment ability, but it may not be reasonable. For example, the company's borrowing interest rate is less than the profit rate. Businesses should make full use of the benefits of operating with debt. The reasonable degree of debt management in different industries is different. Generally, it is about 0.2 for the primary industry, about 0.5 for the secondary industry, and about 0.7 for the tertiary industry.