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A debt to equity ratio of 37 percent indicates that a company has 37 cents of debt for every dollar of equity. Generally, a lower ratio suggests a more conservative financial structure, which can be favorable for stability and lower risk. However, what is considered "good" can vary by industry; some sectors may operate effectively with higher ratios. Therefore, it's essential to compare this ratio against industry benchmarks for a more accurate assessment.

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1w ago

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What is a good debt-to-equity ratio for a company?

A good debt-to-equity ratio for a company is typically around 1:1 or lower. This means that the company has roughly the same amount of debt as it does equity, indicating a balanced financial structure.


What is considered a good debt to equity ratio for a company?

A good debt to equity ratio for a company is typically around 1:1 or lower. This means that the company has a balanced mix of debt and equity, which is generally seen as a healthy financial position.


What is considered a good debt to equity ratio percentage for a company?

A good debt to equity ratio percentage for a company is typically around 1:1 or lower. This means that the company has an equal amount of debt and equity, which indicates a balanced financial structure.


What is considered a good equity ratio for a company?

A good equity ratio for a company is typically around 0.5 to 0.7, indicating that the company has a healthy balance between debt and equity. A higher ratio suggests that the company is less reliant on debt financing.


What strategies can be implemented to achieve a good debt-to-equity ratio for a company?

To achieve a good debt-to-equity ratio, a company can implement strategies such as increasing profits, reducing expenses, paying off debt, and attracting more equity investments. Balancing debt and equity effectively can help improve financial stability and growth prospects.


What is a good debt-to-equity ratio and how does it impact a company's financial health?

A good debt-to-equity ratio is typically around 1:1 or lower. This ratio shows how much of a company's funding comes from debt compared to equity. A lower ratio indicates less reliance on debt, which can be positive as it reduces financial risk and shows stability to investors. Conversely, a higher ratio may indicate higher financial risk and potential difficulties in repaying debt.


What is good debt to eqity ratio?

Good debt to equity ratio would be where your Weighted Average Cost of Capital is minimum. You can also see industry standards.


What is a good assets to equity ratio for a company?

A good assets to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and equity financing.


What is a good asset to equity ratio for a company?

A good asset to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and ownership in the business.


What is a good equity ratio and how does it impact a company's financial health?

A good equity ratio is typically around 0.5 to 0.7, indicating that a company has a healthy balance between debt and equity. A higher equity ratio means the company relies less on debt financing, which can reduce financial risk and increase stability. It shows that the company has a strong financial foundation and is less vulnerable to economic downturns.


Is a debt ratio of more than 20 percent good?

no because debt is always bad.


What is capitalization ratio?

Capital ratio is like a grade that measures the financial stability of an institution. It tells how well capitalized the company has been.