Annual liabilities divided by annual after-tax income. The debt-to-income ratio reflects the strength of expenditure ability, and the critical value is 40%. If this value is reached, the short-term solvency is strong. The debt-to-income ratio is equal to the annual debt divided by the annual after-tax income, which is included in the applicant's invisible debt. Lending institutions will also provide credit to applicants according to the principle of debt-to-income ratio. The higher the debt, either it is not extended or the amount is low.