Demystifying the Debt-to-Equity Ratio: Definition, Formula, and How to Calculate It

This article examines the Debt to Equity (D/E) Ratio, explaining its calculation, relevance, and industry-specific benchmarks. It discusses how high ratios may signal financial risk while lower ratios indicate stability, emphasizing the importance of context. The piece provides detailed guidance and example calculations to aid in understanding a company’s financial health.