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What is a high debt-to-equity ratio?
Why does a company have a higher debt-to-equity ratio?
What is debt-to-equity ratio (D/E ratio)?
What is a debt-to-equity ratio?
Mar 6, 2024 · The D/E ratio measures how much debt a company has taken on relative to the value of its assets net of liabilities. Debt must be repaid or refinanced, imposes interest expense that typically...
- Jason Fernando
- 1 min
Oct 3, 2021 · The debt-to-equity (D/E) ratio is a metric that provides insight into a company's use of debt. In general, a company with a high D/E ratio is considered a higher risk to...
- Jean Folger
- 1 min
Jun 29, 2023 · Learn what a good debt-to-equity ratio is, what it means about a company's capital structure, and why the optimal ratio can vary widely.
May 16, 2024 · High Ratio (> 2): A high D/E ratio indicates that a company finances a significant portion of its operations through debt. This is often considered risky as it implies a heavy reliance on debt...
Debt-to-Equity Ratio, often referred to as Gearing Ratio, is the proportion of debt financing in an organization relative to its equity. Debt-to-equity ratio directly affects the financial risk of an organization.
Dec 12, 2022 · Debt-to-equity ratio = total liabilities / total shareholders' equity. Investors can use the D/E ratio as a risk assessment tool since a higher D/E ratio means a company relies more on debt to keep going. Below is an overview of the debt-to-equity ratio, including how to calculate and use it.
Jun 8, 2021 · The debt-to-equity ratio or D/E ratio is an important metric in finance that measures the financial leverage of a company and evaluates the extent to which it can cover its debt. It is calculated by dividing the total liabilities by the shareholder equity of the company.
