Which is better a high or low debt-to-equity ratio?
Which is better a high or low debt-to-equity ratio?
So, what is a good debt-to-equity ratio? A higher debt-to-equity ratio indicates that a company has higher debt, while a lower debt-to-equity ratio signals fewer debts. Generally, a good debt-to-equity ratio is less than 1.0, while a risky debt-to-equity ratio is greater than 2.0.
What is Tesla’s debt-to-equity ratio?
As of the end of 2018, its debt-to-equity (D/E) ratio was 1.63%, which is lower than the industry average.
What is a high debt ratio?
A debt ratio of greater than 1.0 or 100% means a company has more debt than assets while a debt ratio of less than 100% indicates that a company has more assets than debt. Some sources consider the debt ratio to be total liabilities divided by total assets.
What is apples debt to equity ratio?
Apple’s debt-to-equity ratio determines the amount of ownership in a corporation versus the amount of money owed to creditors, Apple’s debt-to-equity ratio jumped from 50% in 2016 to 112% as of 2019. Enterprise value measures a company’s worth, where Apple’s doubled in just two years to $1.12 trillion.
What is Facebook debt to equity ratio?
Compare FB With Other Stocks
| Meta Platforms Debt/Equity Ratio Historical Data | ||
|---|---|---|
| Date | Long Term Debt | Debt to Equity Ratio |
| 2019-06-30 | $28.24B | 0.32 |
| 2019-03-31 | $22.96B | 0.27 |
| 2018-12-31 | $13.21B | 0.16 |
What is the ideal debt ratio?
In general, many investors look for a company to have a debt ratio between 0.3 and 0.6. From a pure risk perspective, debt ratios of 0.4 or lower are considered better, while a debt ratio of 0.6 or higher makes it more difficult to borrow money.
What is a good debt-to-equity ratio for an individual?
A debt-to-income ratio of 30% is excellent, a ratio of 30% to 36% is acceptable, while a ratio higher than 40% could make creditors reject your application for an auto loan, student loan or mortgage. Plus, it’s a sign you’re in financial trouble!
What is a good equity to asset ratio?
While a 100% ratio would be ideal, that does not mean that a lower ratio is necessarily a cause for concern. Some assets, such as those that generate stable income like pipelines or real estate, tend to carry higher leverage.
