Focus on the pronunciation of debt/equity ratio
English definition of “debt/equity ratio”
debt/equity ratio (also debt-equity ratio, debt-to-equity ratio)
› 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.