Debt to stockholders' equity ratio
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.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
