Debt to Equity Ratio
Measure how your organization is funding growth and how effectively you are using shareholder investments.
Overview
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.
See also
Formula
Total Liabilities / Shareholders Equity
Services
Role
C-Level,
VP / Director
