Debt to Equity Ratio Definition & Application Wiki
Debt to Equity Ratio Definition & Application Wiki
Last Updated by WikiWealth
Debt to Equity Ratio Data
Short Definition
The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. The higher the debt level, the more risk the company is taking. Watch for debt levels much higher than the industry. If the industry is the optimal level, then higher debt/equity ratios for particular companies will indicate additional risk for that particular company. Inversely, lower debt/equity ratio may indicate that the target companies returns could be better if they had more debt in their capital structure.
Long Definition
Source: http://en.wikipedia.org/wiki/Debt_to_equity_ratio