Series 7: 9.4.1.5.2.2 Debt-to-Equity Ratio

Taken from our Series 7 Top-off Online Guide

9.4.1.5.2.2  Debt-to-Equity Ratio

debt-to-equity ratio = debt ÷ equity* (*Usually stockholders’ equity is used here)

This ratio puts a company’s total debt in the numerator and shareholders’ equity in the denominator. This number tells you how much debt financing the company has compared to equity financing. Higher d

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