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
Corporate Governance: An International Review Corporate Governance: An International Review Corporate Governance: An International Review is a peer-reviewed academic journal published six times a year by Wiley-Blackwell. This most prestigious journal publishes international business research on comparative corporate governance, covering topics such as shareholder activism, mutual funds, regulations and shareholder rights. The editorial mission of the journal is to learn about both the antecedents and effects of corporate governance practices, policies, and principles from an interdisciplinary conversation. Consequently, the journal publishes articles from scholars operating from a variety of disciplines, including economics, finance, law, management, sociology and political science. The current Editors-in-Chief are Alessandro Zattoni