Debt to Equity Ratio
How much you owe compared to what you actually own. Banks watch this closely: lower is safer, higher means more reliance on borrowed money. Under 1.0 means more equity than debt.
- How it's worked out
- Total Liabilities / Total Equity
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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