# 1. The debt-to-equity ratio compares a company's total debt to its total equity.
# 2. A high D/E ratio can indicate that a company is relying heavily on borrowing to finance its operations.
# 3. D/E ratios can vary by industry, and lenders and investors use them to assess risk.
# 4. The D/E ratio has limitations and should be used in conjunction with other financial metrics.
# 5. A low D/E ratio may indicate that a company is financially stable and has a strong equity position.
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Source: Books
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