Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications.

Calculating the D/E Ratio The D/E ratio is calculated as total liabilities divided by total shareholders' equity. For example, if, as per the balance sheet, the total debt of a business is worth $ ...

What Is the Debt-to-Equity Ratio? The debt-to-equity ratio compares total liabilities to shareholders' equity. It is one of the most widely and consistently used leverage/gearing ratios ...