New Delhi, March 7 -- It is important to assess a company's financial health, ability to take risks, and growth potential before making investment decisions. One way to check a company's financial health is to check its debt-to-equity ratio.
The debt-to-equity ratio (D/E ratio) is a financial metric that determines the relationship between borrowed money and the total money invested in a company. It compares the company's total debt to its total equity.
The debt-to-equity ratio is calculated by dividing the total liabilities of a company by the total equity of shareholders.
The formula to calculate the D/E ratio is - Total Liabilities / Shareholder's Equity.
This ratio helps us understand a company's financing strategy by showing whet...
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