Funded debt to total capitalization ratio
The ratio establishes a link among the long term funds raised from outsider and total long term funds available in the business. The two words used in this ratio are 1) funded debt and 2) total capitalization.
Though there is no rule of thumb but still the lesser the reliance on outsider the better it will be. If this ratio is smaller better it will be upto 50% or 55% this ratio may be too tolerable and not beyond.
The ratio of 18.18% is quite low. The company has not relied much on outside sources for raising long term funds. There is enough scope for the company to raise long term loans from outsiders.