Cryptocurrency Q&A Is 0.5 a good debt-to-equity ratio?

Is 0.5 a good debt-to-equity ratio?

KabukiPassion KabukiPassion Tue Nov 19 2024 | 5 answers 1005
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. Is 0.5 a good debt-to-equity ratio?

5 answers

Andrea Andrea Thu Nov 21 2024
A company with less debt is generally considered to be in a stronger financial position.

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emma_carter_doctor 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.

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SamsungSpark SamsungSpark Thu Nov 21 2024
In financial analysis, a lower debt-to-equity ratio is often viewed as favorable.

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BusanBeautyBloomingStarShine 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.

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EnchantedSoul EnchantedSoul Thu Nov 21 2024
This is because a lower ratio indicates that the company has less debt compared to its equity.

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