Asked by Silvia Gopalakrishnan on Jun 09, 2024
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A company's total liabilities divided by its total stockholders' equity is called the:
A) Equity ratio.
B) Return on total assets ratio.
C) Pledged assets to secured liabilities ratio.
D) Debt-to-equity ratio.
E) Times secured liabilities earned ratio.
Debt-To-Equity Ratio
A metric revealing the comparative use of shareholders' equity and debt to finance a company's assets.
Total Liabilities
The sum of all financial obligations a company owes to outside parties, including both current and long-term debts.
Stockholders' Equity
The owners' residual claim on a company's assets after deducting liabilities, often represented as share capital plus retained earnings.
- Comprehend the debt-to-equity ratio and its significance in assessing a company's financial structure.
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Learning Objectives
- Comprehend the debt-to-equity ratio and its significance in assessing a company's financial structure.
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