As we look at the benefits of considering Debt to Equity Ratio, let's evaluate critical takeaways:
a) The debt-to-equity ratio compares an organization's liabilities to its shareholders' equity and is used to determine how much debt or leverage it employs
b) Lenders may view high ratios as an indication that an organization is too risky to invest in
c) To identify much more significant risks, investors may choose to focus on an organization's long-term debt-to-equity ratio
d) Debt to equity ratios will differ depending on the industry
PS: The ratio is fluid and varies from industry to industry, so check D/E before you invest
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Posted On: 28 Nov 2022 7:00 PM