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  • 23-06-2022
  • Computers and Technology
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When dividing it’s total debt by total equity what’s a company trying to measure

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birdsgarcia37483
birdsgarcia37483 birdsgarcia37483
  • 23-06-2022

Answer:

A business's debt-to-equity ratio, or D/E ratio, is a measure of the extent to which a company can cover its debt. It is calculated by dividing a company's total debt by its total shareholders' equity. The higher the D/E ratio, the more difficult it may be for the business to cover all of its liabilities.

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