What is debt to equity?
Maclear Team
Last Update 2 months ago
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.