By 1988, SRC's debt to equity ratio was down to 1.8 to 1, and the business had a value of $43 million.
The equity ratio for First Bank System should have been 4.64 percent, placing it third in the rankings behind J.
Many City pundits believe that new debt to equity ratios indicate how confident companies are about investments.
Debt to equity ratio was safe and stable in both companies.
The debt to equity ratio here is 4:1.
Having the right debt to equity ratio does not guarantee you'll get a loan.
Merrill Lynch's highest reported debt to equity ratio in a Form 10-Q filed after 2004 is 27.5 to 1.
In the shareholder value system, high debt to equity ratios are considered an indicator that the company has confidence to make money in the future.
If a firm has a higher equity ratio than the industry, this is considered less risky than if it is above the average.
Similarly, if the equity ratio increases over time, it is a good sign in relation to insolvency risk.