debt/equity ratio
Noun
The leverage ratio that measures the riskiness of a company’s capital structure by relating the amount of capital supplied by the firm’s creditors to the amount supplied by the firm’s owners: Total Liabilities ÷ Total Shareholders’ Equity.
Synonym(s):
- D/E ratio; debt-to-equity ratio; debt-to-net-worth ratio.
- [BE]: gearing ratio.
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