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: | ||
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* [[Cost of financial distress]] | * [[Cost of financial distress]] | ||
* [[Debt ratio]] | * [[Debt ratio]] | ||
* [[Equity]] | |||
* [[Gearing]] | * [[Gearing]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 13:49, 5 July 2022
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.
