Additional Resources

  1. Financial Ratio Explanations [www3.nd.edu]
  2. The Debt-equity Ratio, The Dividend Payout Ratio, Growth ... [dspace.mit.edu]
  3. The Financing Decision [stern.nyu.edu]
  4. Engineering Economics [academia.edu]
  5. Problem Set 9-leverage And Capital Structure [fs2.american.edu]
  6. Problems Related To Capital Structure And Leverage [uni.edu]

Definition

The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. The two components are often taken from the firm's balance sheet or statement of financial position, but the ratio may also be calculated using market values for both, if the company's debt and equity are publicly traded, or using a combination of book value for debt and market value for equity financially.

Debt Equity Ratio

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