debt-to-equity ratio
The debt-to-equity ratio is a financial metric used to evaluate a company's level of financial leverage. It is calculated by dividing total debt by total equity. This ratio provides insight into how a company is financing its operations and how much of its assets are funded by debt versus by equity. A high debt-to-equity ratio indicates that a company may be at higher risk of financial distress, while a low ratio suggests lower risk.
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