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Debt-to-equity (D/E) ratio is the ratio of a company’s total liabilities to shareholder equity.
A company with high D/E relative to similar companies (e.g. in the same industry and country) may be a risky investment, with a higher probability of failing. A company with unusually low D/E may be struggling to expand.
Related Links
Wall Street Prep’s article on D/E
CFI’s article on D/E
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