What is a Debt/Equity Ratio?

The debt-to-equity ratio, also known as the debt-to-equity ratio, and the debt-to-equity ratio, are indicators of the company's financial leverage, that is, the ratio of equity to debt in the company's source of funds for establishing assets.

Debt-equity ratio

Calculated by dividing the company's long-term debt by

It may make more sense to compare the debt-to-equity ratios of different companies in the same industry. Experts suggest that it is best to consider the debt-equity ratio over a longer period of time (for example, several years). In addition, the factor to be considered is the debt repayment time, which has a great impact on the company's solvency. ^[1]