The Debt/Equity (D/E) ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity.
 | | Debt/Equity Ratio | | Debt/Equity (D/E) Ratio, calculated by dividing a company's total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity. | | Breaking it Down: | | Given that the debt/equity ratio measures a company's debt relative to the total value of its stock... | | Read More » | | Related to "Debt/Equity Ratio" | | | | Debt Financing | | Debt financing occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and institutional investors. | | Read More » | | | Liquidity Ratios | | Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital | | Read More » | | | Cash Asset Ratio | | The cash asset ratio is the current value of marketable securities and cash, divided by the company's current liabilities. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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