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 ...

Using the Debt-to-Equity Ratio By Philip Durell – Updated Nov 14, 2016 at 11:54PM This column was adapted from the December 2006 issue of Motley Fool Inside Value .

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 ratio is calculated by dividing a corporation's total liabilities by its shareholder equity. The optimal D/E ratio varies by industry, but it should not be above a level of 2.0.

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 ...

The debt-to-equity (D/E) ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.

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

When examining the health of your business, it’s critical totake a long, hard look at your debt-to-equity ratio. If your ratiosare increasing–meaning there’s more debt in relation toequity ...