Desde Investopedia

TERM OF THE DAY

Debt/Equity Ratio Debt/Equity (D/E) Ratio, calculated by dividing a company’s total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.

Breaking it Down: Given that the debt/equity ratio measures a company’s debt relative to the total value of its stock... Read More