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
Epicyclic gearing of teeth on each gear meets the relationship formula_7, this equation can be re-written as the following: where These relationships can be used to analyze any epicyclic system, including those, such as hybrid vehicle transmissions, where two of the components are used as "inputs" with the third providing "output" relative to the two inputs. In many epicyclic gearing systems, one of these three basic components is held stationary; one of the two remaining components is an "input", providing power to the system, while the last component is an "output", receiving power from the system. The ratio of input rotation to