The Debt-to-equity Ratio | What It Is and How to Use It
Jun 15, 2021 · A negative debt-to-equity ratio means that the business has negative shareholders’ equity. If your liabilities are more than your assets, your equity is negative. Typically, lenders, stakeholders, and investors consider a negative debt-to-equity ratio to be risky. When your ratio is negative, it might indicate your business is at risk of bankruptcy.
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