A high debt-to-equity ratio implies that a company has more risk than a company with a low ratio.

Question

Quizplus · Accepted Answer

A high debt-to-equity ratio means that the company has a higher proportion of debt compared to equity, indicating that it may have trouble meeting its financial obligations in the future. This higher level of financial risk can make the company more vulnerable to economic downturns or other market upheavals.

A High Debt-To-Equity Ratio Implies That a Company Has More