debt-to-equity
Borrowing versus ownership
Debt-to-equity is a financial ratio comparing what a company owes to what its shareholders own.
It measures how much a business relies on borrowed money versus invested capital: a debt-to-equity ratio of 2:1 means the company has twice as much debt as equity.
High ratios suggest aggressive financing but greater risk; low ratios indicate conservative funding but potentially slower growth.
Borrowed capital for amplified returns
- gearingInterlocking toothed wheels
- capitalizationUsing big letters properly
- solvencyCapacity to pay debts
- financial structureOrganization of funding sources
balance sheet · liabilities · risk assessment · creditworthiness · financial health · net worth · financial leverage · book value
Providing capital for purchases
- restructuringRearranging an existing framework
- mergersCorporate consolidations
- acquisitionsThings newly gained
- IPOFirst public stock offering
venture capital · buyout · recapitalization · corporate bonds · retained earnings · shareholder value · business valuation · startup funding
Standard for comparison
- trend analysisExamining directional data shifts
- peer groupSocial circle of equals
- financial metricsNumerical business performance measures
- valuationAssessment of monetary worth
due diligence · credit rating · investment grade · risk profile · annual report · financial modeling · stress testing · credit analysis
Buying underpriced stocks fundamentally
- growth stocksShares expected to appreciate
- blue chipStable, reputable investment
- market capitalizationAggregate equity value outstanding
- investor confidenceFaith in financial prospects
stock valuation · shareholder returns · market sentiment · risk tolerance · asset allocation
leverage
Borrowed capital for amplified returns
- gearingInterlocking toothed wheels
- capitalizationUsing big letters properly
- solvencyCapacity to pay debts
financial structure · balance sheet · liabilities · risk assessment · creditworthiness · financial health · net worth · financial leverage · book value · financial stability
financing
Providing capital for purchases
- restructuringRearranging an existing framework
- mergersCorporate consolidations
- acquisitionsThings newly gained
IPO · venture capital · buyout · recapitalization · corporate bonds · retained earnings · shareholder value · business valuation · startup funding · investment banking
benchmark
Standard for comparison
- trend analysisExamining directional data shifts
- peer groupSocial circle of equals
- financial metricsNumerical business performance measures
valuation · due diligence · credit rating · investment grade · risk profile · annual report · financial modeling · stress testing · credit analysis
value investing
Buying underpriced stocks fundamentally
- growth stocksShares expected to appreciate
- blue chipStable, reputable investment
- market capitalizationAggregate equity value outstanding
investor confidence · stock valuation · shareholder returns · market sentiment · risk tolerance · asset allocation
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- ratiosratio, proportion, fraction, percent, percentage
- Financial RatiosROI, ROE, P/E ratio, gross margin, net margin
- investment analysistechnical analysis, valuation, financial modeling, investment research, stock valuation
- financial healthfinancial health, fiscal health, solvent, insolvent, insolvency
- Valuationfair market value, market value, fair value, book value, appraised value