However, a company with a high debt-to-equity ratio and a high return on equity is still seen as a more risky and less desirable investment than a company achieving the same return on equity with ...

A company with a high debt-to-equity ratio uses more debt to fund its operations than a company with a lower debt-to-equity ratio. The debt-to-equity ratio also gives you an idea of how solvent a ...

The result is over 5.4, meaning that Apple used more than $5.40 of debt for every dollar of equity. While Apple has a relatively high D/E ratio often associated with risk, it doesn't mean it is ...

A debt-to-equity ratio of .5 or $1 of debt for every $2 of equity may therefore still be considered high for this industry. You can also compare a company's debt to how much income it generates in ...

a high D/E ratio might be necessary for that growth. A D/E ratio of 2 indicates that the company derives two-thirds of its capital financing from debt and one-third from shareholder equity ...

This ratio helps us understand a company's financing strategy by showing whether the company is using equity or debt for its operations. A high D/E ratio shows that a company uses more borrowing ...

In the event that a company’s revenue isn’t high enough to keep up ... examine a company’s reliance on debt is the D/E ratio, which compares debt to equity directly. Another commonly used ...