The debt-to-equity ratio is a risk measure used by both investors and lenders.

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The debt-to-equity ratio is a financial metric that provides insight into a company's financial structure and risk potential. As such, it is used by both investors and lenders to assess a company's ability to pay back debts, manage financial risks, and generate long-term returns. A high debt-to-equity ratio indicates a higher level of debt relative to equity, which may indicate higher financial risk or lower financial flexibility for a company. Therefore, the debt-to-equity ratio is an essential risk measure for investors and lenders alike.

The Debt-To-Equity Ratio Is a Risk Measure Used by Both