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
Rachev ratio local extrema. Several empirical tests of the Rachev ratio and the generalized Rachev ratio have been proposed. In quantitative finance, non-Gaussian return distributions are common. The Rachev ratio, as a risk-adjusted performance measurement, characterizes the skewness and kurtosis of the return distribution (see picture on the right). Rachev ratio The Rachev Ratio (or R-Ratio) is a risk-return performance measure of an investment asset, portfolio, or strategy. It was devised by Dr. Svetlozar Rachev and has been extensively studied in quantitative finance. Unlike the "reward-to-variability" ratios, such as Sharpe ratio and Sortino ratio, the Rachev ratio is a "reward-to-risk" ratio, which