The debt to equity ratio indicates the extent to which a company is leveraged.

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The debt to equity ratio is a financial ratio that measures the amount of debt a company has relative to its equity. A high debt to equity ratio indicates a company is highly leveraged, meaning it has borrowed more money relative to the amount invested by shareholders. A low debt to equity ratio indicates a company is less leveraged, which may be viewed as a positive factor by investors.

The Debt to Equity Ratio Indicates the Extent to Which