debt equity ratio is calculated by dividing a company's total libilities by its stockholder's equity, is a debt ratio used to measure a company's financial leverage.
It is the ratio in which a company designs it's capital structure . For Example :XYZ company capital structure - 5000 equity shares@10 ,Rs 50000 @10% interest
The Debt-to-Equity ratio (D/E) indicates the proportion of the company’s assets that are being financed through debt. Debt to Equity ratio is a long term solvency ratio that indicates the soundness of long-term financial policies of the company.
Debt-to-equity ratio measure of a company's ability to repay its obligations. Eq.- D/E Ratio=Total laibilities/Equity