14 mars 2023

Different industries vary in D/E ratios because some industries may have intensive capital compared to others. This could lead to financial difficulties if the company’s earnings start to decline especially because it has less equity to cushion the blow. There is no universally agreed upon “ideal” D/E ratio, though generally, investors want it to be […]

Changes in long-term debt and assets tend to affect the D/E ratio the most because the numbers involved tend to be larger than for short-term debt and short-term assets. If investors want to evaluate a company’s short-term leverage and its ability to meet debt obligations that must be paid over a year or less, they