Debt-to-Equity Ratio (D/E)

Used to evaluate the amount of financial leverage in an investment, calculated by dividing the debt of an asset or a company by its total equity. 

In real estate, D/E is used as a measure of ownership and is calculated by dividing the mortgage balance by the property’s equity. 

Related Terms:  Loan-to-Value Ratio (LTV)
Image
Debt-to-Equity Ratio (D/E)