The debt-to-equity ratio assesses the liquidity of the company,meaning the ability to pay current debts from current assets.

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The debt-to-equity ratio assesses the company's financial leverage, which measures the amount of debt in relation to equity. It does not directly assess liquidity, although high levels of debt can negatively impact a company's ability to meet current obligations.

The Debt-To-Equity Ratio Assesses the Liquidity of the Company,meaning the Ability