debt-to-equity ratio

Discipline: Economics

Debt-to-Equity Ratio is the ratio of total liabilities divided by total stockholders' equity.

A low debt ratio is always preferable for the financial health of the firm, since it indicates that it will have sufficient strength to honor its liabilities when due.

Also see:

· acid-test ratio
· current ratio
· debt
· debt ratio
· leverage
· working capital

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