Debt-to-Equity Ratio

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The Debt-to-Equity Ratio is a financial metric that quantifies a company’s financial leverage by comparing its total debt to total equity. It is calculated by dividing total debt by total equity, providing insight into the proportion of company financing that comes from creditors versus shareholders. A higher ratio indicates greater leverage and potential financial risk. This ratio is crucial for assessing a company’s capital structure and financial health.

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