The debt-to-revenue ratio is a financial indicator comparing a municipality's total outstanding debt to its annual revenues, expressing debt as a percentage or multiple of yearly income. For example, a municipality with $50 million in debt and $40 million in annual revenue has a ratio of 125%. This metric helps assess the relative burden of debt: a ratio of 100% means it would take one year's entire revenue to pay off debt (ignoring other expenses), while 200% would take two years. Unlike debt per capita, this ratio accounts for the municipality's ability to service debt through revenue generation. Credit rating agencies and provincial oversight bodies monitor debt-to-revenue ratios as indicators of fiscal health. There's no universal "right" ratio, but significant increases warrant attention.