Connect Access Card for Financial Accounting: Information and Decisions
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 13, Problem 9DQ
Summary Introduction

Concept Introduction:

Debt to Equity Ratio:

Debt to equity ratio is indicates the leverage position of the company. It indicates the comparison between the debt and he equity of the business. The formula to calculate Debt to equity ratio is as follows:

  Debt to equity ratio = Total liabilitiesTotal Stockholder’s Equity

To discuss: the importance of debt to equity ratio for analyzing the capital structure in financial statement analysis.

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