Calculate the debt-to-equity (D/E) ratio to measure a company's financial leverage. This ratio indicates how much debt is used relative to shareholders' equity and is essential for evaluating corporate risk and solvency.
Divides total liabilities by shareholders' equity to show the proportion of debt financing versus equity financing. A ratio above 2.0 is generally considered high.
Compute your DTI ratio to assess loan eligibility and financial health.
Evaluate short-term liquidity with the current ratio.
Measure immediate liquidity using the quick (acid-test) ratio.
Evaluate stock valuation using the Price-to-Earnings ratio.
Measure profitability relative to shareholders' equity with ROE.
Assess asset efficiency with the Return on Assets ratio.
