Debt to Equity Ratio, Demystified
Hubspot Sales
NOVEMBER 27, 2018
It's calculated by dividing a firm's total liabilities by total shareholders' equity. And for investors, the debt to equity ratio is used to indicate how risky it is to invest in a company. Debt is an amount owed for funds borrowed from a bank or private lender. The higher the debt to equity ratio, the riskier the investment.
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