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.

1 Answers
4 votes
Vote up!
Vote down!

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.

Ask Question

Waterfall approach to debt free ™

Legal debt relief methodology that works based on your financial conditions. Learn more »

Last Updated on: Fri, 8 Jun 2018

BBB-A--Rating TrustLink logo TrustLink logo