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Trading glossary · fundamentals

debt-to-equity ratio

A number comparing how much a company has borrowed with how much belongs to its owners. Higher means more borrowing.

The fuller meaning

Debt divided by shareholders' equity, a gauge of how much a company relies on borrowing. A high ratio magnifies trouble when rates rise or profits fall; compare it with companies in the same sector, since normal levels differ by industry.

debt-to-equity ratio, also called debt-to-equity.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank