Debt to stockholders' equity ratio

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Debt to stockholders' equity ratio (or, simply, debt to stockholders' equity) is a ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debt to stockholders' equity ratio. A ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.

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