Harvard Business Review

JULY 13, 2015

In fact, analysts and investors want companies to use debt smartly to fund their businesses. That’s where the debt-to-equity ratio comes in. What is the debt-to-equity ratio? “It’s a simple measure of how much debt you use to run your business,” explains Knight.

Debt to Equity Ratio 8

Debt to Equity Ratio Long-term Short-term Banking 8

Harvard Business Review

JUNE 10, 2011

Losses in AP will overwhelm many institutions' equity cushion. The average debt-to-equity ratio of the 10 largest MFIs in India is 7.06 , indicating an average 12% equity cushion. In a recent paper, Jonathan Morduch and Jonathan Conning explain the role of debt and equity financing in the microfinance industry.

Microfinance 13

Microfinance Debt to Equity Ratio MFI Crisis 13

Harvard Business Review

OCTOBER 20, 2011

The revolution ran on equity capital, which was in short supply. Anyone would have concluded that allocating capital according to expected return on equity would be optimal for growth. The lesson: Return on Equity, like peacock tail splendor, is a very poor guide for allocating resources. It fails for two reasons.

ROE 12

ROE Debt to Equity Ratio Innovation Incentives 12