Debt equity ratio: Difference between revisions
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''Financial ratio analysis.'' | |||
The debt equity ratio measures the relative of 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. | |||
Revision as of 19:36, 9 February 2019
Financial ratio analysis.
The debt equity ratio measures the relative of 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.
