Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications.

Role of Debt-to-Equity Ratio in Company Profitability. When looking at a company's balance sheet, it is important to consider the average D/E ratios for the given industry, as well as those of the ...

For example, if a company's total debt is $20 million and its shareholders' equity is $100 million, then the debt-to-equity ratio is 0.2. This means that for every dollar of equity the company has ...

Morningstar is an investment research company offering mutual fund, ETF, and stock analysis, ratings, and data, ... Debt/Equity Ratio Morningstar.com Aug 25, 2023. Share.

That’s why the total-debt-to-total-assets ratio should be seen as just a single tool, meant to be complemented by other calculations and analysis. For example, the debt-to-equity ratio and ...

Caterpillar CAT, for example, has a debt-equity ratio of 1.37 while Google’s GOOG parent company Alphabet GOOGL is 0.05. The best comparisons are within industries and against a company’s ...