{"id":11356,"date":"2022-02-04T13:53:13","date_gmt":"2022-02-04T10:53:13","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=11356"},"modified":"2023-10-17T15:32:33","modified_gmt":"2023-10-17T12:32:33","slug":"debt-to-equity-ratio-what-do-debts-mean","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2022\/02\/04\/debt-to-equity-ratio-what-do-debts-mean\/","title":{"rendered":"Debt to Equity Ratio: What Do Debts Mean?"},"content":{"rendered":"\n

There are plenty of instruments for analysing companies, financial ratios among them. Today I am speaking about one of them — the Debt to Equity Ratio, or Debt\/Equity.<\/p>\n\n\n\n

It demonstrates the ratio of the capital that the company owns to the one it loans. Simply speaking, it is the debt of the company divided by its equity, just as the name goes. The multiplier helps to understand what comprised the assets of the company. In certain cases, D\/E is also called financial leverage<\/a>.<\/p>\n\n\n\n

The ratio is useful for checking the current financial situation of the company, whether it will be able to develop in the future, and whether it will generate profit.<\/p>\n\n\n\n

<\/span><\/a>How to calculate Debt to Equity<\/span><\/h2>\n\n\n\n

The formula for D\/E is as follows:<\/p>\n\n\n\n

Debt to Equity Ratio = Liabilities \/ Assets<\/p>\n\n\n\n