Debt to Equity ratio is the ratio of debt to equity or shareholders’ funds

short term

No worries! We‘ve got your back. Try BYJU‘S free classes today!

long term

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

current

No worries! We‘ve got your back. Try BYJU‘S free classes today!

other current

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B long term
Debt to Equity ratio establishes the relationship between the long term debts and the equity i.e., shareholder's fund.

Suggest Corrections

Similar questions

A ______ debt-to-equity ratio indicates a lower amount of financing by debt via lenders versus funding through equity via shareholders.

A company with a debt-to-equity ratio of 2.5:1 and Rs 15,00,000 of shareholders' funds has debt of ________

(\frac{D e b t}{E q u i t y})

Join BYJU'S Learning Program