A company's total liabilities divided by its total stockholders' equity is called the:

A) Equity ratio.
B) Return on total assets ratio.
C) Pledged assets to secured liabilities ratio.
D) Debt-to-equity ratio.
E) Times secured liabilities earned ratio.

Debt-To-Equity Ratio

A metric revealing the comparative use of shareholders' equity and debt to finance a company's assets.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including both current and long-term debts.

Stockholders' Equity

The owners' residual claim on a company's assets after deducting liabilities, often represented as share capital plus retained earnings.