A company's total liabilities divided by its total stockholders' equity is called the:

Question

Quizplus · Accepted Answer

The correct term for a company's total liabilities divided by its total stockholders' equity is the debt-to-equity ratio. This ratio indicates the proportion of a company's financing that comes from debt versus equity. A high debt-to-equity ratio may indicate that a company is relying too heavily on debt to finance its operations, which can be risky if the company has trouble repaying its debt.

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