raivath

What is Debt/Equity Ratio?

I have a major quiz tomorrow. Following topic is about Equity Ratio.
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dylanx
"A measure of a company's financial leverage. Debt/equity ratio is equal to long-term debt divided by common shareholders' equity. Typically the data from the prior fiscal year is used in the calculation. Investing in a company with a higher debt/equity ratio may be riskier, especially in times of rising interest rates, due to the additional interest that has to be paid out for the debt. "
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tiuw
"A measure of a business's financial control worked out simply by separating it is full financial obligations by means of stockholders' equity. It indicates exactly what proportion regarding money and credit card debt this company is utilizing to invest in the possessions. = complete financial obligations/shareholders money "
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