2 years ago

When dividing it’s total debt by total equity what’s a company trying to measure

1 answer:

3 0

Answer:

A business's debt-to-equity ratio, or D/E ratio, is a measure of the extent to which a company can cover its debt. It is calculated by dividing a company's total debt by its total shareholders' equity. The higher the D/E ratio, the more difficult it may be for the business to cover all of its liabilities.

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