10 stock analysis ratios used by the pros

Debt-to-Equity

This is a key measure of a business’s leverage. It highlights the amount of debt a company has created to fund operations.

Those with high Debt-to-Equity will have to pay higher interest payments, if these payments become too much and exceed returns from ongoing activities, it can lead to bankruptcy.

Formula:

Debt-to-Equity Ratio = Total Liabilities/Shareholders Equity

Previous Ratio Next Ratio

This document is purely education and is not investment advice. UK Investor Magazine accepts no liability for action taken on the back of reading this document.

Terms & Conditions: Please view the full terms and conditions of the UK Investor Magazine before reading this guide. This guide was compiled along side investment professionals to give you the best educational experience. The document you will receive is designed to increase your knowledge and understanding but is not specific investment advice. All investments carry risk. By submitting your details you agree to be contacted by UK Investor Magazine and our partners in relation to financial information and educational tools. We accept not responsibility and will not be held liable for any losses arising from submitting your details and receiving this guide.

Download the 10 Ratios guide for free below.

A copy will be emailed to you immediately.