Margins & Ratios
What is Debt/Equity?
How much the company relies on money owed to others, lenders and suppliers alike, relative to shareholder money.
How it is calculated
Total liabilities divided by stockholders’ equity.
How to read it
Higher means more leverage and more risk in a downturn. Norms vary widely by industry, so compare with peers.
Where the numbers come from
Scrutar computes Debt/Equity from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.