begin {aligned} &\text {Debt/Equity} = \frac { \text {Total Liabilities} } { \text {Total Shareholders' Equity} } \\ \end {aligned} Debt/Equity=Total Shareholders’ EquityTota… See more

D/E ratio measures how much debt a company has taken on relative to the value of its assets net of liabilities. Debt must be repaid or
that typicall… See more

Let’s consider a historical example from Apple Inc. (
). We can see below that for the fiscal year (FY) ended 2017, Apple had total liabilities of $241 billi… See more

Not all debt is equally risky. The long-term D/E ratio focuses on riskier long-term debt by using its value instead of that for total liabilities in the numerator of the standard formula:… See more