Day: April 23, 2018

  • What is a debit to equity ratio and why do I need to understand it?

    What is a debit to equity ratio and why do I need to understand it?

    Simply put, the debt to equity ratio (D/E) compares a company’s total debt to total equity. It is calculated as follows: D/E ratio = Total Liabilities/Shareholders Equity. It is a measurement of whether the company can cover its debt and an indication of how leveraged the company is. The higher the ratio, the more difficult it […]