Expert on Land and Property Law of Indonesia | as featured by, Bisnis Indonesia and The Jakarta Post

Debt-To-Equity Ratio

Debt-to-equity Ratio

  1. total liabilities divided by total shareholders' equity. This shows to what extent owners' equity can cushion creditors' claims in the event of liquidation
  2. total long-term debt divided by total shareholders' equity. This is a measure of leverage, the use of borrowed money to enhance the return on owners' equity
  3. long-term debt and preferred stock divided by common stock equity. This relates securities with fixed charges to those without fixed charges.

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