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Subject 5. Uses and Analysis of the Balance Sheet rm Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. Higher debt-equity ratio indicates higher financial risk.
<span>Debt-Equity Ratio includes short-term debt in the numerator.
The total debt includes all liabilities, including non-interest-bearing debt such as accounts payables, accrued expenses, and deferre
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