Debt to Equity Ratio Formula

Debt to Equity Ratio Formula

Debt to Equity Ratio Formula is also called the balance sheet ratio formula because all the values given in the formula can get from the balance sheet of the company.

Debt to Equity Ratio Formula can be calculated by dividing the total liabilities of the company by the total equity of the company.

Debt to Equity Ratio Formula=Total Liabilities/Total Equity

 

Debt to Equity Ratio Formula

If the result of the formula is 1 then the investors and creditors have an equal stake in business assets. The company with a high result of debt to equity ratio formula is riskier than the low result. Here you can check complete details about Debt to Equity Ratio definition. Stay tuned for more.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

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