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Equity Ratio





Calculator-Debt To Equity


FORMULA:

  • It is a Leverage ratio
  • Indicates a company's Liabilities per $1 of equity
  • Ability to absorb a reduction in assets without hindering its ability to pay creditors
  • Total Debt to Total Equity Ratio = Total Liabilities / Equity
  • Value should be low
  • It is better to remain below one-one ratio