debt-equity ratio |
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Definition
Measure of a firm's leverage or gearing and its capacity for debt repayment, it indicates proportion of firm's total capital contributed by trade creditors and lenders. Formula: Total debt ÷ owners' equity. Also called leverage ratio or gearing ratio.
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debt-equity ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
debt-equity ratio appears in the definitions of the following terms: gearing ratio, debt to equity ratio and leverage ratio
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