A company's total liabilities divided by its total stockholders' equity is called the:
A)Equity ratio.
B)Return on total assets ratio.
C)Pledged assets to secured liabilities ratio.
D)Debt-to-equity ratio.
E)Times secured liabilities earned ratio.

Question

Quizplus · Accepted Answer

The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. It is calculated as total liabilities divided by total stockholders' equity.

A Company's Total Liabilities Divided by Its Total Stockholders' Equity