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    What is a Debt to Equity Ratio?

    The debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. 

    This metric demonstrates the extent to which the company funds its operations with debt financing versus equity investment or retained earnings. 

    Related Topics

    • Trend Analysis of Financial Statements
    • Common-Size Analysis (Vertical Analysis) of Financial Statements
    • Common-Size Financial Statement
    • Net Dollar Retention
    • Horizontal Analysis
    • Per Share Basis
    • Profitability Ratios
    • Gross Margin Ratio
    • Profit Margin
    • After Tax Profit Margin
    • Return on Assets
    • Total Shareholder Return
    • Cash on Cash Return
    • Earnings Per Share
    • Diluted Earnings Per Share
    • Asset Turnover Ratio
    • Berry Ratio
    • Break-Even Analysis
    • Liquidity Ratio
    • Current ratio  (Working Capital Ratio)
    • Working Ratio
    • Quick Ratio
    • Quick Assets
    • Days Sales Outstanding
    • Cash Ratio (Operating Cash Flow Ratio)
    • Receivables turnover ratio (often converted to average collection period)
    • Accounts Payable Turnover Ratio
    • Inventory turnover ratio (often converted to average sale period)
    • Solvency (Coverage Ratios)
    • Leverage Ratio (Debt Ratio)
    • Asset Coverage Ratio
    • Debt to Equity
    • Debt to Income Ratio
    • Debt Coverage Ratio
    • Times Interest Earned
    • Market Capitalization
    • Price to Equity Ratio
    • Book-To-Market Ratio
    • Price to Earnings Ratio
    • Price to Earnings Growth (PEG) Ratio
    • Price to Earnings Growth Payback Ratio
    • CAPE Ratio
    • Price to Cash Flow Ratio
    • Capital Maintenance
    • Book to Bill Ratio
    • Asset Turnover Ratio
    • Plowback Ratio 
    • Days Inventory Outstanding
    • Days Payable Outstanding
    • Days Sales Outstanding
    • Non-financial Performance Measures: The Balance Scorecard

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