Since a high debt-equity ratio is often associated with increased risk, many investors prefer businesses with relatively low D/E ratios (somewhere in the range of 1-1.5).

If a company’s D/E ratio is 1.0 (or 100%), that means its liabilities are equal to its shareholders’ equity. Anything higher than 1 indicates that a company relies more heavily on loans than ...

A debt-to-equity ratio of 1.75 means that a company has $1.75 of debt for every $1.00 of equity. This indicates that the company relies more heavily on debt than equity to finance its operations ...

The debt-to-equity (D/E) ratio, also called the liability-to-equity ratio, is a financial measurement that compares a company's total liabilities (debt) to its shareholder equity (worth).

Debt-equity ratio is one of the ways to measure your business's financial health. Dividing total liabilities by the owners' equity shows how much of the company's assets are tied up in debt. If.

Long-Term Debt to Equity Ratio = Long-Term Debt / Shareholders’ (or Total) Equity LTDE Ratio = 500,000 / 1,000,000 = 0.5 This means that the company has $0.50 of long-term debt for every dollar ...