Finance Formulas / July 7, 2018 / Chanel Cleveland
DebtEquity (DE) Ratio, calculated by dividing a company’s total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage. The DE ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.
So how do you know if you’re spending the right amount? You need some numbers. First, you need to know how long the average customer sticks with you before they cancel their service. Because of course the longer a customer sticks with you, the more valuable they are.
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