what does a d e ratio of 1 5 indicate 
a d e ratio of 1 5 would indicate that the company in question has 1 50 of debt for every 1 of equity to illustrate suppose the company had assets of 2 million and liabilities of 1 2 million because equity is equal to assets minus liabilities the company s equity would be 800 000 its d e ratio would therefore be 1 2 million divided by 800 000 or 1 5 