Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications.

The debt-to-equity ratio is the metabolic typing equivalent for businesses. It can tell you what type of funding – debt or equity – a business primarily runs on. "Observing a company's capital ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Learn about our editorial policies The debt-to-equity (D/E) ratio is a leverage ratio that shows how much a company's financing comes from debt or equity. A higher D/E ratio means that more of a ...

Leverage ratios are metrics that express how much of a company's operations or assets are financed with borrowed money. Businesses cost a lot of money to run, and that money has to come from ...