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 ...

What Does a High Debt-to-Equity Ratio Mean? For a mature company, a high D/E ratio can be a sign of trouble that the firm will not be able to service its debts and can eventually lead to a credit ...

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 ...

A bad liability-to-equity ratio is high, which means the company has a lot of debt compared to its own money (equity). ... What does a debt-to-equity ratio of 0.5 and 1.5 mean?

The exchange ratio – or how much equity is granted per unit of debt – is determined based on the company's financial standing, stock valuation and creditor willingness.

Investment word of the day: Assessing a company's financial health involves evaluating its debt-to-equity ratio, which compares total debt to shareholder equity. A high ratio indicates reliance on ...

“Similar to the debt-to-equity ratio, this ratio needs to be compared to peers in the same industry to determine an appropriate ratio. If the ratio exceeds one, then it means that there are more ...

Moderate Ratio (Between 0.2 and 0.5): A moderate ratio indicates a company is using a balance of equity and debt to finance its assets. While it is not overly reliant on debt, it is also ...

For example, the debt-to-equity ratio and interest coverage ratios are supplemental ways to see how leveraged a company is. Remember that a high debt-to-assets ratio isn’t necessarily a bad thing.