D/E
Business & Finance abbreviation · Finance
| Stands for | Debt-to-equity ratio |
|---|---|
| Categories | Business & Finance |
D/E stands for Debt-to-equity ratio, a finance abbreviation.
Leverage ratio equal to total debt, or sometimes total liabilities, divided by shareholders' equity, showing how much a company relies on borrowing relative to owner funding. Higher D/E means more financial risk but potentially higher returns on equity.
Example: After the debt-funded acquisition, D/E rose from 0.4 to 1.3, prompting a ratings review.
Usage notes
Because some analysts count only interest-bearing debt and others all liabilities, figures from different sources differ. Utilities and banks normally run with much higher D/E than technology firms. Also written D/E ratio or debt/equity, and sometimes expressed as a percentage, so 1.3 appears as 130 percent.
Related abbreviations
More finance abbreviations
- CAGR – Compound annual growth rate
- CapEx – Capital expenditure
- CAPM – Capital asset pricing model
- CCC – Cash conversion cycle
- CIM – Confidential information memorandum
- CVC – Corporate venture capital
- DCF – Discounted cash flow
- DCM – Debt capital markets
- DD – Due diligence
- DIO – Days inventory outstanding
- DPI – Distributions to paid-in capital
- DPO – Days payable outstanding