Debt Equity Ratio is :a.Activity Ratiob.Solvency Ratiosc.Operating Ratiod.Liquidity Ratio

The Debt Equity Ratio is a financial metric used to assess the proportion of debt and equity financing in a company's capital structure. It is calculated by dividing the total debt of a company by its total equity. The Debt Equity Ratio falls under the category of financial ratios, which are used to evaluate different aspects of a company's financial health.

To determine the Debt Equity Ratio, you need to gather the necessary financial information from a company's balance sheet. The total debt can be found by adding up all the long-term and short-term liabilities, such as loans, bonds, and other forms of debt. The total equity is calculated by subtracting the total liabilities from the total assets.

Once you have the total debt and total equity figures, you can calculate the Debt Equity Ratio by dividing the total debt by the total equity. The resulting ratio indicates the extent to which a company relies on debt financing compared to equity financing.

The Debt Equity Ratio is commonly used by investors, creditors, and analysts to assess a company's financial risk and stability. A higher ratio suggests that a company has a higher proportion of debt in its capital structure, which may indicate higher financial risk. On the other hand, a lower ratio indicates a higher proportion of equity financing, which may suggest a more stable financial position.

In summary, the Debt Equity Ratio is a financial ratio that falls under the category of financial ratios. It is calculated by dividing a company's total debt by its total equity and is used to assess the proportion of debt and equity financing in a company's capital structure.