The Project Gutenberg EBook of McGuffey's First Eclectic Reader, Revised. Edition, by William Holmes McGuffey. This eBook is for the use of anyone anywhere at no cost and with. almost no restrictions whatsoever. You may copy it, give it away or. re-use it under the terms of the Project Gutenberg License included. with this eBook or online at www.gutenberg.net. Title: McGuffey's First Eclectic Reader, Revised Edition.
It is a popular benchmark used in the measurement of an entity's (person or corporation) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan.
Leverage ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. A low debt to equity ratio indicates lower risk, because debt holders have less claims on the company's assets. A debt to equity ratio of 5 means that debt holders have a 5 times more claim on assets than equity holders. A high debt to equity ratio usually means that a company has been aggressive in financing growth with debt and often results in volatile earnings.