The debt to equity ratio indicates:The net worth of the companyThe proportion of the company financed by lenders versus ownersA company's working capital funding gapThe liquidity of the company

The debt to equity ratio indicates the proportion of the company financed by lenders versus owners. This ratio is used to evaluate a company's financial leverage and is calculated by dividing a company's total liabilities by its shareholder equity. It essentially shows the extent to which the company is funded by debt compared to its own equity. A high debt to equity ratio indicates that the company has been aggressive in financing its growth with debt, which can result in volatile earnings. On the other hand, a low debt to equity ratio indicates that the company has not relied as much on borrowed money to finance its operations.