Debt to equity ratio: Learn what a good debt-to-equity

Learn what a good debt-to-equity ratio is, what it means about a company's capital structure, and why the optimal ratio can vary widely. Discover what the Debt to Equity (D/E) ratio means for investors and learn how this crucial metric can shape your financial strategy. The debt-to-equity ratio is a financial metric that reveals a company's leverage and risk profile. Discover how to calculate and interpret it effectively. Debt-to-equity ratio A company's debt - to-equity (D/E) ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance the company's assets. [1] Closely related to leveraging, the ratio is also known as risk ratio , gearing ratio or leverage ratio .