But, a company having high level of debt to equity ratio can have sufficient assets to cover the debt.

Can anybody tell what is the maximum debt to equity ratio to be on the save side for a:

a) personal finance?
b) business?

Any response would be appreciated.

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One of the leading factors to determine a company's financial health is the debt to equity ratio. The ratio can be simply told as: Debt to Equity Ratio=Totla Liabilities/Total Assets - Total Liabilities

Debt to equity ratio of 75% should be avoided as the leverage structure makes the chances higher for a corporation to get bankrupt. But, a company having high level of debt to equity ratio can have sufficient assets to cover the debt.


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