Debt-to-Equity Ratio
Definition
A solvency ratio comparing a company’s total liabilities to shareholders’ equity. Lower ratios indicate less financial leverage and risk.
Formula / Rules
$ \text{Debt-to-Equity} = \frac{\text{Total Liabilities}}{\text{Shareholders' Equity}} $
Example
$60 million debt and $40 million equity yields 1.5 debt-to-equity ratio. PEG Ratio Category: Equity / Valuation Metric Definition: Price/earnings-to-growth ratio that adjusts the P/E ratio for expected earnings growth. A PEG near 1.0
Frequently Asked Question
What is Debt-to-Equity Ratio in trading?
A solvency ratio comparing a company’s total liabilities to shareholders’ equity. Lower ratios indicate less financial leverage and risk.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.