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The debt ratio of financing can go as high as 80% in some cases.

Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms.

But the excesses in the economy - the high corporate debt ratios - are going to have to be corrected.

Baxter has cut its debt ratio to 35 percent of capital in the last two years.

And when you run the standard debt ratios for our country, they are not as bad as people would have you believe.

By contrast, the debt ratio of industrialized countries is about 40 percent.

These industries' debt ratio hit 25% in 1985 and again last year (see chart 9).

"In fact, the debt ratios, excluding financial units, have actually gone down - a sign we consider as a significant improvement."

In 2008 it was noted as having one of the lowest debt ratios among companies in the health care sector.

That would put the company's debt ratio at about eight times cash flow, which is high by industry standards.