A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.A ratio in excess of 0.25 is considered high.

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The debt-to-equity ratio is indeed used to assess a company's financial leverage, but a ratio in excess of 0.25 is not universally considered high. Acceptable debt-to-equity ratios vary by industry, with some industries having norms much higher than 0.25.

A Debt-To-Equity Method Provides a Quick Idea of One's Financial