financial leverage of a business' long term loans in relation to its equity serving as a measure of long term financial stability (Accounting)
The debt to equity ratio (D/E) is a
financial ratio indicating the relative proportion of
equity and
debt used to finance a company's assets. It is equal to total
debt divided by
shareholders' equity. The two components are often taken from the firm's
balance sheet or statement of financial position (so-called book value), but the ratio may also be calculated using market values for both, if the company's debt and equity are
publicly traded, or using a combination of book value for debt and market value for equity.
See more at Wikipedia.org...
Free Download Now!
