Sep
01
Debt equity can be both fairly simple and quite complex, depending upon what type and amount of debt and equity you may possess. Simply defined, the debt-to-equity ratio is a financial figure calculated by comparing the proportion of shareholder equity to the amount of debt used to keep a business or company in operation. It is also commonly referred to as risk, gearing or leverage (as it is similar to leveraging). Your company’s financial records (such as its balance sheets and profit and loss statements) are used to calculate this ratio.