Debt to Equity Ratio
Measure how your organization is funding growth and how effectively you are using shareholder investments.
KPIs & Metrics 101
Everything you need to know about KPIs to start your data driven journey
KPIs & Metrics 201
Real life business examples of KPIs and how to establish key business metrics
Formula
Total Liabilities / Shareholders Equity
Services
Role
C-Level, VP / DirectorOverview
The Debt to Equity Ratio measures how your organization is funding its growth and how effectively you are using shareholder investments. A high debt to equity ratio is evidence of an organization fuelling growth by accumulating debt. This is a common practice, as outside investment can greatly increase your ability to generate profits and accelerates business growth; reaching too far, however, can backfire and leave the company bankrupt.
