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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Debt-to-Equity Ratio


A very closely-watched metric by analysts. The percentage calculated by dividing a company's debt by its owners' equity. In general, a high D/E ratio is considered dangerous, because the company has borrowed a lot and this increases its chances of default and ultimate bankruptcy.