The Debt to Equity Ratio: Definition, Calculation, & Usefulness
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The Debt to Equity Ratio: Definition, Calculation, & Usefulness
The debt to equity ratio compares a company's total debt and liabilities to the total shareholders' equity. Learn about the definition and calculation of the debt to equity ratio and understand its usefulness in evaluating financial position.
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By the end of 2024, student loan debt in the United States totaled about $1.8 trillion, with the average balance — including private loans — reaching as high as $43K. For some, the debt from pursuing a higher education may last years after graduation. But as Alyssa Jeacoma (@lightweightlyssie) expressed in a now-viral TikTok video, many — including herself — could be in debt for life. The video has accumulated 6.5 million views and more than 800K likes, and among the reactions from users online,
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