THE DEBT TO EQUITY RATIO AND IT'S USE IN STOCK ANALYSIS

Links to social media accounts; https://www.instagram.com/matrich_investing/?hl=en https://www.facebook.com/Matrich-Investing-104068614639938/ https://twitter.com/MatrichInvesti1?s=09 EVERYTHING ABOUT THE DEBT TO EQUITY RATIO This is a metric that is attained after taking total liabilities of a company and dividing it by it’s equity. This ratio is used to figure out the ability of a company in raising itself up. It is used as a measurement of trying to figure out as to whether a company finances it’s operations by either debt or equity as it’s major source of finance It is also used to figure out the ability of shareholder’s equity in paying out all it’s debt during tough financial times When performing stock analysis the smaller this ratio is the better a company is as it indicates that the company is financed more by equity than by debt. This ratio should be less than 0.8 to indicate that it’s a good ratio (with exceptions of financial institutions such as banks) THE FORMULA 𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔/𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓′ 𝒔 𝑬𝒒𝒖𝒊𝒕𝒚 #investing #wealth #shares #bonds #income #success #investors #capital #dividends #shareprice #ownership #business #stocks #companies #tanzania

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