Debt-to-equity ratio On a balance sheet, the formal definition is that debt (liabilities) plus equity equals assets, or any equivalent reformulation. Both the formulas below are therefore identical: Debt to equity can also be reformulated in terms of assets or debt: General Electric Co. () Debt-to-equity ratio The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage. The two components are often taken from the firm's balance sheet or statement of financial position (so-called book
Expense ratio as it relates to the type of investments a fund will hold. In nonprofit organizations, the term "program expense ratio" refers to program expenses divided by total expenses. This is one of the primary financial indicators of concern to charities and their donors. The sum of the program expense ratio and the "support service expense ratio" is by definition 100% for a non-profit organization. Charities having a higher program expense ratio (and thus a lower support service expense ratio) are often considered to be more efficient. The support service expense ratio is also commonly called the "overhead". Leading sources of