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How to Calculate Debt Equity Ratio: A Clear and Confident Guide The debt-to-equity (D/E) ratio is a financial metric that measures the proportion of a company's financing that comes from debt and equity. It is a useful tool for investors and analysts to evaluate a company's financial leverage and risk. A high D/E ratio indicates that a company has more debt than equity, which can be a sign of financial risk. Conversely, a low D/E ratio indicates that a company has more equity than debt, which can be a sign of financial stability. Calculating the D/E
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