Debt to equity
AccountingTotal borrowings divided by shareholders’ equity.
In plain terms
Above 2 means lenders fund the business more than owners do — and lenders get paid first.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 1 term
Total borrowings divided by shareholders’ equity.
Above 2 means lenders fund the business more than owners do — and lenders get paid first.