Metrics & KPIsDebt to Equity
Definition
Debt to Equity This ratio expresses the relationship between capital contributed by creditors and capital contributed by owners expresses the degree of protection Provided by owners for creditors. The higher the ratio the greater the risk of being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A client with a low debt and worth ratio usually has greater flexibility for future borrowing. A more highly leveraged company has a more limited debt capacity.
Tags
risk, capital, equity, debt, capacity