Debt-to-equity ratios can vary greatly from industry to industry.

Question

Quizplus · Accepted Answer

Different industries have different levels of debt tolerance and capital structures, which affects their debt-to-equity ratios. For example, capital-intensive industries such as utilities or oil and gas companies may have higher debt-to-equity ratios than service-based industries such as technology or healthcare. Therefore, it is important to consider the industry average when analyzing a company's debt-to-equity ratio.

Debt-To-Equity Ratios Can Vary Greatly from Industry to Industry