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A financial ratio showing an individual or company’s liabilities compared to their total wealth. This ratio is useful for seeing how leveraged a company is. A lower number is better. Surety Bond companies look for ratios of 4 to 1 or less.

Debt to Equity = Total Liabilities/Total Equity or Total Liabilities/(Total Assets – Total Liabilities)

Vice President at Axcess Surety
Vice President of Axcess Surety. Surety Bond and financial expert dedicated to helping businesses and individuals understand and obtain surety credit.
Josh Carson
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