Financial Statements
What is the Debt to Equity Ratio ?
This ratio illustrates the relationship between capital contributed by the creditors (such as banks and suppliers) which loan a business cash and the owners equity remaining in the business. It is commonly used to measure the degree of financial leverage of the business. The Total Long-Term Debt, divided by Stockholders' Equity = DTE Ratio. (Stockholders Equity = Total Assets, minus Total Liabilities).
Need Professional Help?
If you need help with "Financial Statements" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.