joagar80 joagar80

22-07-2022
Business

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Explain how financial managers can assess the company’s debt structure and determine how reasonable it is.

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Tundexi Tundexi

22-07-2022

The use of debt-to-equity ratio will allow managers to assess the company’s debt structure and determine how reasonable it is.

What is a debt-to-equity ratio?

This refers to the financial ratio of ordinary shareholders' equity and the stake of creditors in a company.

Hence, this use of debt-to-equity ratio will allow managers to assess the company’s debt structure and determine how reasonable it is.

Read more about debt-to-equity

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