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 ...

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 ...

Trends in debt-to-equity ratios are monitored and identified by companies as part of their internal financial reporting and analysis. "Interpreting debt-to-equity ratios is a bit of art mixed with ...

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.

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 ...

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 ...