Financial Encyclopedia
Debt / Equity
Definition
Debt to Equity ratio - a ratio that reflects the ratio of total business liabilities to equity.
Example
Suppose a company has $2 million of long-term liabilities and $1 million of short-term liabilities. The shareholders of the company have invested $1 million.
Debt / Equity = ($2 + $1)/$1 = 3x
More detailed
Debt/Equity = (Long Term Liabilities + Short Term Liabilities) / Equity
This ratio measures the extent to which a company's assets are funded by the debt and equity of the business.
A low debt-to-equity ratio usually implies a more stable business. Companies with a higher ratio are considered riskier for lenders and investors than companies with a lower ratio. Therefore, it is important to compare the indicator with industry averages.
According to Ranks methodology, this indicator is analyzed in the Financial position block and used along with other indicators to calculate the score.
排名
LLC «等级 AAA»
Aghasi Khanjyan street, 50, Yerevan, Armenia, 0025
销售部门：
电子邮件： sales@ranksworld.com
伊琳娜：
Armenia:
Marr street, 16, apt. 5, Yerevan, Armenia, 0079
Prefix LLC
联系方式：
社交：
塞浦路斯：
Loutrakiou, 5, CHARA VENEZIA BUILDING, 1st floor,
Office 101, 尼科西亚, 塞浦路斯, 2027
Zolotukhin & Partners 有限公司
LLC“AAA级”不提供经纪服务，也不将资金用于信托管理。
法人实体代码：53125283 保险公司代码：43715106 注册于 亚美尼亚司法部.
风险警告和免责声明
© «RANKS» 2022. 保留所有权利
Privacy Policy
Terms of Use