The debt-to-equity ratio compares the amount of creditors' claims to the assets of a firm with owners' claims to the assets of the same firm.

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The debt-to-equity ratio is a measure of a company's financial leverage that compares its total liabilities to its total shareholders' equity. It shows the proportion of financing provided by creditors compared to the financing provided by shareholders.

The Debt-To-Equity Ratio Compares the Amount of Creditors' Claims to the Assets