Great term to learn during rough financial times:
Quote:
Total Debt to Equity (MRQ) - This ratio is total debt for the most recent quarter (MRQ) divided by total shareholder equity for the same period. It compares the assets provided by creditors to assets provided by shareholders, and is a good indicator of the company's financial leverage. This ratio evaluates the extent to which total assets have been financed with debt. For example, a debt ratio of 30% indicates that 30% of the company's assets have been financed with borrowed income. |