Debt-to-equity ratio

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A company's debt-to-equity ratio shows you what proportion of debt or equity a company is using to finance its assets.

A high debt-to-equity ratio shows that the company has a relatively heavy debt load.

Watch this video to learn about the importance of this ratio for your stock-market investing strategies.

For more in-depth information, read the lesson the video is based on:

Lesson
Learn how the debt to equity ratio can measure the proportion of debt and equity is used to finance a company, and how it can be calculated.
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