Definition of debt-to-equity

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TeachMeFinance.com - explain debt-to-equity



debt-to-equity -- Total Debt/Total Owner's Investment. Measures how much of the company's assets have been acquired by debt versus by owner's funds. If the ratio is greater than 1.0, it means more of the money came from outside sources. Need to closely monitor sales level to ensure your ability to service outside debt.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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