Company analysis
What is debt to equity?
How much a company has borrowed compared with what its owners have put in.
Explained in more detail
A higher ratio means more of the business is funded by lenders, which magnifies both good and bad years. What counts as high varies enormously by industry, so it is only meaningful compared against similar companies.
An example
For instance₹200 crore of debt against ₹100 crore of equity is a ratio of 2.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time debt to equity appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.