Debt equity ratio: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand.) |
imported>Doug Williamson (Remove superfluous word.) |
||
| Line 1: | Line 1: | ||
''Financial ratio analysis.'' | ''Financial ratio analysis.'' | ||
The debt equity ratio measures the relative | The debt equity ratio measures the relative level of debt in a company's capital structure. | ||
It is calculated as: | It is calculated as: | ||
Revision as of 11:38, 13 February 2019
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.
