Ratio of debt to equity (D / E) is a financial report shows the relative share of capital and debt to finance the activities of the company. It is closely related to leverage, the ratio is also known as a risk, gearing or leverage. Two components are often derived from the company's financial statements or balance sheet, but the ratio can be calculated using market values, and if the company's liabilities and stockholders' equity is listed on bag, or using a combination of book value of debt and the market value of economic assets. There is a fundamental difference between capital and debt. Debt is something to borrow and pay interest. You will have to pay for this order. Equity ownership is the difference between market price of property and the debts against the property. Some securities may be more or less combined. Debt claims are also called "fixed claims" and equity are also called as "the residual claims".
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