Debt-to-equity Ratio
- total liabilities divided by total shareholders' equity. This shows to what extent owners' equity can cushion creditors' claims in the event of liquidation
- 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
- long-term debt and preferred stock divided by common stock equity. This relates securities with fixed charges to those without fixed charges.