5 Financial Ratios Used To Measure Business Risk and How To Use Them
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MARCH 9, 2022
Debt-to-equity ratio. Banks, financial institutions, and investors typically use the debt-to-equity ratio to determine the risk of loaning money to an organization. Debt-to-equity ratio = (total liabilities)/(shareholders’ equity). Debt-to-equity ratio = (total liabilities)/(shareholders’ equity).
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