debt/equity ratio
noun [ C ]
(also debt-equity ratio, debt-to-equity ratio) ukus FINANCE
a method of measuring a company's ability to borrow and pay back money that is calculated by dividing the total amount of long-term debt by the amount that shareholders have invested. This method can be used by investors to decide whether or not to invest in a company:
If the debt/equity ratio is greater than 1, assets are mostly financed through debt; if less than 1, assets are mostly financed through equity.
The company’s debt-to-equity ratio stood at 0.60:1 and was one of the best among its global peers.