Debt/Equity Ratio

Definition

• A comparison of debt and equity used to measure the livelihood of a business.

Synonyms
correlation, percentage, equivalence

Related Terms and Acronyms

• Carrying Costs — Definition,
  • The cost of maintaining a property.
• Cash Flow — Definition,
  • The money an investment produces after subtracting cash expenses from income.
• Cash Flow Forecast — Definition,
  • An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
• Debt-to-Income Ratio — Definition,
  • The percentage of an individual's income that is used to repay debt.
• Ratio — Definition,
  • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.