Financials
Debt-to-Equity Ratio
Total liabilities divided by shareholders' equity, measuring financial leverage. A ratio above 2:1 may indicate the business is heavily leveraged; lenders often impose maximum debt-to-equity covenants on term loans.
Financials
Total liabilities divided by shareholders' equity, measuring financial leverage. A ratio above 2:1 may indicate the business is heavily leveraged; lenders often impose maximum debt-to-equity covenants on term loans.