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Debt-to-Equity Ratio:
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Background Information
What does Debt to Equity Ratio mean?
The debt to equity ratio is a financial ratio that indicates the relative proportion of shareholders' equity and the debt used to finance a company's assets. It is usually abbreviated as D/E.
Formula
Debt to equity ratio = Total liabilities / Stockholders' equity
Example
A company has total liabilities as $54.77 billion and total shareholders’ equity as $14.61 billion.
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