Debt. Equity Ratio
This query is : Resolved
02 June 2010
Please tell me what is Debt. equity ratio & its calculation method.
04 June 2010
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.
Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.
Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.
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