Terms Beginning With 'd'

Debt-to-Equity Ratio

  • January 22, 2020
  • Team Kalkine

The D/E ratio or debt-to-equity ratio demonstrates the proportion of shareholders’ equity and debt used by a company to finance its assets. The ratio computes the weight of financial liabilities and the total debt against the total equity. It can be calculated by summing up short-term and long-term debt with other fixed payments and dividing the result by shareholders’ equity.

D/E Ratio = Total Shareholders’ Equity/Total Liabilities

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