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.

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 ...

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 ...

That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for ...