Guwahati, Jan. 24 -- The debt to equity ratio is a critical financial metric used by investors, analysts, and business owners to assess a company's financial health. It indicates the proportion of a company's debt to its shareholders' equity, offering insights into how a business is financing its operations. Understanding this ratio is essential for making informed investment decisions and managing financial risks effectively.
The debt to equity ratio measures a company's financial leverage by comparing its total liabilities to its shareholders' equity. The formula for calculating the debt to equity ratio is:
A higher debt to equity ratio indicates that a company has taken on more debt relative to its equity, which may suggest higher fi...
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