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What is debt to equity?

Maclear Team

Last Update לפני 8 חודשים

The debt to equity ratio measures your company’s total debt relative to the

amount originally invested by the owners and the earnings that have been

retained over time.
Debt/Equity = Total liabilities / Total shareholders’ equity

Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good.

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