QUESTION 10 OF 25

What is the debt-to-equity ratio and what does it tell about a companyâ€™s finances?

The debt-to-equity ratio is a common and important way to measure a company's financial leverage. Simply, it measures the degree to which a company is financing their operations through debt (loans, etc.) vs. wholly-owned funds.

"The debt-to-equity ratio is an important metric that is used by outside investors and other stakeholders to determine the financial health of the company. It is calculated by taking total liabilities divided by total equity. The ratio will measure how leveraged a company is, and if the company would be able to cover operations in an economic downturn."

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Treasury Analyst Mock Interview

What is the debt-to-equity ratio and what does it tell about a companyâ€™s finances?

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25 Treasury Analyst Interview Questions & Answers