I'm considering a debt-to-equity ratio of 0.5 for my company's financing structure. I want to know if this ratio is considered good in terms of financial health and stability.
5 answers
Andrea
Thu Nov 21 2024
A company with less debt is generally considered to be in a stronger financial position.
emma_carter_doctor
Thu Nov 21 2024
For lenders and investors, a company with a lower debt-to-equity ratio is perceived as less risky.
SamsungSpark
Thu Nov 21 2024
In financial analysis, a lower debt-to-equity ratio is often viewed as favorable.
BusanBeautyBloomingStarShine
Thu Nov 21 2024
Specifically, a debt-to-equity ratio of 0.5 or below is widely regarded as a good indicator of financial health.
EnchantedSoul
Thu Nov 21 2024
This is because a lower ratio indicates that the company has less debt compared to its equity.