debt-equity ratio

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.

Popular 'Accounting & Auditing' Terms

debt-equity ratio in the news

Loading...

This content can be found on the following page:

http://www.businessdictionary.com/definition/debt-equity-ratio.html

Search for another term



Tools

debt-equity ratio is...

... in the Accounting & Auditing and Banking, Commerce & Finance subjects.

Nearby Terms

Search volume for debt-equity ratio

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z