Debt-To-Equity Ratio

Business / Taxes / Debt-To-Equity Ratio: A company's debt-to-equity ratio indicates the extent to which the company is leveraged, or financed by credit. A higher ratio is a sign of greater leverage. You find a company's debt-to-equity ratio by dividing its total long-term debt by its total assets minus its total debt. You can find these figures in the company's income statement, provided in its annual report. Average ratios vary significantly from one industry to another, so what is high for one company may be normal for another company in a different industry. From an investor's perspective, the higher the ratio, the greater the risk you take in investing in the company. But your potential return may be greater as well if the company uses the debt to expand its sales and earnings.

Other Words for Ratio

Ratio Adverb Synonyms: proportion, relationship, correlation, correspondence
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Orchestration

Entertainment / Music / Orchestration: Arranging a piece of music for an orchestra. Also, the study of music. MORE

Organization For Economic Development And Cooperation (OECD)

Business / Agriculture / Organization For Economic Development And Cooperation (OECD): An international organization established by the United States, Canada and certain Western European countries in 1960. The OECD studies and discusses trade and related matters. Its current 29 members MORE

Options Clearing Corporation (OCC)

Business / Finance / Options Clearing Corporation (OCC): Applies to derivative products. Financial institution that is the actual issuer and guarantor of all listed option contracts. MORE

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