Asset Classes and Downturns: Beginner's guide to financial statement pt 109

As part of my financial's learning series from @morningstar @investopedia
Financial Ratios & Calculations

Debt to Equity : A measure of the degree to which a company is financing it's operations with debt rather that with it's own resources.

A higher D/E suggest more risks, while a particulary low one may indicate that a business is not taking advantage of debt financing to expand.

Source : https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide