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Stocks

Debt to Equity (Total)

One important financial ratio to understand is the debt-to-equity ratio. This is calculated by taking the total debt, both short and long term, and dividing it by the total shareholder equity. This ratio provides insight into a company's financial leverage and the amount of risk it carries. A higher ratio indicates a higher level of debt and therefore a higher level of risk. It is important to carefully examine this ratio when analyzing a company's financial health.

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