article thumbnail

Debt to Equity Ratio, Demystified

Hubspot Sales

It's calculated by dividing a firm's total liabilities by total shareholders' equity. And for investors, the debt to equity ratio is used to indicate how risky it is to invest in a company. When a business uses equity financing, it sells shares of the company to investors in return for capital.

article thumbnail

How to Start a Business: A Complete Guide for Startup Entrepreneurs

Hubspot Sales

They have amassed over $1 million in savings and are fairly savvy investors (themselves or the people they hire). The Super Home is our smallest and least expensive line, initially positioned by its manufacturer as a home computer. The corporation does not get a tax deduction when it distributes dividends to shareholders.

Finance 145