Debt to equity ratio: Difference between revisions
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''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 11:39, 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.
