Debt-to-Equity D E Ratio Formula and How to Interpret It
Upon plugging those figures into our formula, the implied D/E ratio is 2.0x. There is the only three reasons entrepreneurs need accounting and finance no universally agreed upon “ideal” D/E ratio, though generally, investors want it to be 2 or lower. These industry-specific factors definitely matter when it comes to assessing D/E. The cash ratio …
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