View source for Debt to equity ratio

''Financial ratio analysis.''

The debt equity ratio measures the relative level of debt in a company's capital structure.

It is calculated as:

''Debt '''&divide;''' equity''


Higher ratios indicate a relatively higher level of financial risk for the company.


== See also ==
* [[Cost of financial distress]]
* [[Credit rating]]
* [[Debt ratio]]
* [[Equity]]
* [[Gearing]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]