Glossary
Debt to Equity Ratio
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The Debt to Equity Ratio (D/E) compares a company’s borrowed money (debt) to the money invested by owners (equity). It reflects how much a company relies on debt to finance its operations. A high D/E ratio suggests more debt financing, which can be risky but fuel faster growth. A low D/E ratio indicates a more conservative approach, relying more on its funds.