April 2, 2019 Joseph Wall

A variety of stock valuation statistics can be used to evaluate a company together with the debt / capital ratio to get a more complete picture of the company’s viability as an investment. The debt-to-equity ratio can be used as an alternative measure to evaluate the debt situation of a company. This ratio measures how much financial leverage a company has, so that a company’s total liabilities are divided by its equity. When the debt / equity ratio is high, this usually indicates that the company has used a substantial amount of debt to finance its growth. However, large amounts…