Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications.

Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications. Business Insider logo ...

Debt To Equity. The debt to equity ratio is another leverage ratio that is similarly easy to calculate as the debt to assets ratio, but in its pure form only requires data from the right side of ...

Investors and bankers use the debt-to-asset ratio to make smarter financial decisions. We’ve covered what it is and how it affects your finances.

For example, the debt-to-equity ratio and interest coverage ratios are supplemental ways to see how leveraged a company is. Remember that a high debt-to-assets ratio isn’t necessarily a bad thing.

Generally, longer-term loans have higher interest rates. According to Ken Flaherty, senior manager of retail lending for financial data firm Curinos, as of the second quarter of 2025, average home ...