Debt to Equity Ratio

Measure how your organization is funding growth and how effectively you are using shareholder investments.

Financial KPI Examples | Debt to Equity Ratio

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.

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