A figure of 0.5 or less is ideal. In other words, no more than half of the company’s assets should be financed by debt. Alternatively, some suggest a 2:1 Debt to Equity structure.
However, this strongly depends on case to case.
Always try to seek more information before you answer this question. The capacity of an organisation to take debt is dependent on the “riskiness” of its operations. An organisation with volatile cashflows should take less debt. If business is stable and cashflows are steady, you can take more debt to reduce overall cost of capital
