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
Aircraft finance Aircraft finance Aircraft finance refers to financing for the purchase and operation of aircraft. Complex aircraft finance (such as those schemes employed by airlines) shares many characteristics with maritime finance, and to a lesser extent with project finance. Financing for the purchase of private aircraft is similar to a mortgage or automobile loan. A basic transaction for a small personal or corporate aircraft may proceed as follows: Aircraft are expensive. A Boeing 737-700, the type Southwest uses, is priced in 2008 USD in the range of $58.5–69.5 million (although very few airlines actually pay this much). Airlines also typically have