Company Health

What is Debt-to-Equity?

How much a company borrowed vs. what it actually owns

Full Explanation

High debt-to-equity means the company borrowed a lot. This is risky when interest rates are high. Low D/E = financially conservative.

Pro Tip

Under 1.0 is a common rule of thumb for most businesses — but context matters. Banks, utilities, and real estate companies routinely run D/E above 1.0 by design and are considered healthy. Always compare within the same industry.

Related Company Health Terms

P/E Ratio

How expensive a stock is compared to its profits

Balance Sheet

A snapshot of everything a company owns and owes

Analyst Consensus

The average opinion of professional stock analysts

Revenue

Total money a company brings in

View all Company Health terms →

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