Balance Sheet

Capital Structure and Leverage Risk

Debt-to-Equity Ratio

The Debt-to-Equity Ratio measures the extent to which the company’s operations and assets are financed through debt relative to shareholders’ equity. It provides a high-level view of the company’s financial leverage, risk appetite, and balance between external borrowing and internally funded capital. This ratio is particularly useful for assessing balance-sheet resilience and the potential amplification of returns and losses through leverage.