The Debt to Equity Ratio is measure with which of the following?

Question

Quizplus · Accepted Answer

The Debt to Equity Ratio is calculated by dividing the total liabilities by the total stockholders' equity. This helps to understand the proportion of debt and equity that is used to finance the company's assets. A higher debt to equity ratio indicates that the company is relying more on debt financing, which can be risky as it means more interest payments and higher financial leverage. Therefore, it is important to monitor this ratio closely for any signs of financial distress.

The Debt to Equity Ratio Is Measure with Which of the Following