Debt-to-Equity Ratio: calculation, benchmark
October 19, 2020
Petersen Trading Company has total liabilities of $937,500 and a debt to equity ratio of 1.25. Debt to equity ratio is calculated by dividing total liabilities by stockholder’s equity. The D/E ratio can be classified as a leverage ratio (or gearing ratio) that shows the relative amount of debt a company has. As such, it is […]