Honors Marketing
The debt-to-equity ratio is a financial metric that compares a company's total liabilities to its shareholder equity, indicating the relative proportion of debt and equity used to finance the company’s assets. A high ratio suggests a company is heavily financed by debt, which may increase financial risk, while a lower ratio indicates a more conservative approach with less reliance on borrowed funds. This metric is crucial for understanding a company’s capital structure and assessing its financial health.
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