See how we rate investing products to write unbiased product reviews. A debt-to-equity ratio measures a company's financial leverage by comparing total liabilities to its shareholder equity.

Opinions expressed are those of the author. Understanding the differences between equity and debt is critical for entrepreneurs and founders to know how to leverage both. Typically, equity comes ...

One way to check a company's financial health is to check its debt-to-equity ratio. The debt-to-equity ratio (D/E ratio) is a financial metric that determines the relationship between borrowed ...

Equity financing is the method of raising capital by selling shares of ownership in a company, allowing businesses to obtain funds from various investors without incurring debt. Equity financing ...

In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. It's worth noting ...