5. Debt to Equity Ratio
Elearnmarkets.com explains debt to equity ratio which is an important parameter while deciding to invest in a stock. Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity. The D/E ratio indicates how much debt a company is using to finance its assets relative to the amount of value represented in shareholders' equity.