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What is debt to equity?

Maclear Team

Last Update hace 10 meses

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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