December 25, 2020

D/E ratio

D/E ratio

  • compares a company’s total liabilities to its shareholder equity
    • can be used to evaluate how much leverage a company is using
      • Higher leverage ratios tend to indicate a company or stock with higher risk to shareholders
  • difficult to compare across industry groups where ideal amounts of debt will vary



https://www.investopedia.com/thmb/sTvHzgcygJCirEXbRovuJ82zimU=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc():format(webp)/DEBTEQUITYFINALJPEG-098e44fb157a41cf827e1637b4866845.jpg


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