Debt to equity ratio: Difference between revisions
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''Financial ratio analysis.'' | |||
The debt equity ratio measures the relative level of debt in a company's capital structure. | |||
It is calculated as: | |||
''Debt '''÷''' equity'' | |||
Higher ratios indicate a relatively higher level of financial risk for the company. | |||
== See also == | == See also == | ||
* [[Debt | * [[Cost of financial distress]] | ||
* [[Credit rating]] | |||
* [[Debt ratio]] | |||
* [[Equity]] | |||
* [[Gearing]] | * [[Gearing]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 16:26, 23 June 2024
Financial ratio analysis.
The debt equity ratio measures the relative level of debt in a company's capital structure.
It is calculated as:
Debt ÷ equity
Higher ratios indicate a relatively higher level of financial risk for the company.
