Over 700 finance terms, Shmooped to perfection.
The percentage of a company's capital that is represented by debt. If a company has total capital (debt plus equity) of $100, and $30 of that consists of bonds, then the bond ratio is 30%. As a very general rule, any bond ratio over 30% shows a highly-leveraged company, but this is not uniform. Some industries, like the airlines, traditionally have much higher bond ratios.