The optimal debt-to-equity ratio will tend to vary widely by industry, but the general consensus is that it should not be above a level of 2.0. While some very large companies … See more

A business that ignores debt financing entirely may be neglecting important growth opportunities. The benefit of debt capitalis that it allows businesses to leverage a small amou… See more

When looking at a company's balance sheet, it is important to consider the average D/E ratios for the given industry, as well as those of the company's closest competitors… See more

Debt-to-equity is a gearing ratio comparing a company's liabilities to its shareholder equity. Typical debt-to-equity ratios vary by industry, but companies often will borrow amounts th… See more