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Debt to Equity Ratio, Demystified


Growing a business requires investment capital. When companies are scaling, they need money to launch products, hire employees, assist customers, and expand operations. This sentiment is true now more than ever with the collective U.S. business debt to equity ratio soaring to .98 in Q1 2020 — the highest it’s been since 2016. The trend shows that businesses are growing thanks to a healthy balance of debt and equity.There are numerous ways to raise capital, and each will have a different impact on your company and the pace at which you grow. The most common way to raise capital is through …

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