The Debt to Equity Ratio

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As a type of leverage ratio, the Debt to Equity Ratio measures the degree to which a firm is finalized through debt. Although debt can be utilized effectively, too much debt increases a firm's fixed costs and can negatively affect its cash flow. Furthermore, as debt loads increase the firm may incur increased financing costs due to the risk associated with carrying a higher amount of debt.
In this video you'll learn how to calculate the Debt to Equity Ratio as learn as how to conduct some basic financial analysis using the metric.
Photo by Rick Tap: unsplash.com/@...

[@TheSamGerman]

Thank you! Your video helped me understand this a lot better :)

[@Alanisbusinessacademy]

You're very welcome!

[@SykesWorld2019]

very well said thanks much you help me out

[@hilarykatiemay4210]

What’s the difference between this and the gearing ratio

[@sydneyyoung4271]

So so so helpful, Thanks heaps!!!

[@Alanisbusinessacademy]

Glad I could help!

[@danielnorman4506]

Beautiful video, but controversial to include all liabilities. From a survey done for my daughter the internet is pretty much wrong, or I am getting old. Debt carries interest. If no interest then not debt. Then there is ASC 842…

[@dominikaochedalska6342]

so touching for an excellent video

[@Alanisbusinessacademy]

Awe thanks!

[@navi-ui8dq]

what happens or what does it mean when equity is higher than total liabilities? and its quotient is less than 1?

[@LockBingle]

"debt/equity ratio for financing" is it the same or something else?

[@onlineedu6807]

Very good video.

[@mozpassion8996]

Hi there, do you include the current assets?