A ratio used to measure financial leverage. This is calculated by dividing liabilities by stockholders equity. This is a good indication of how much equity to debt a company is using to finance its assets. A company with debt/ equity less than 1 shows a higher equity position than debt. This is good.
Return on Equity
A ratio that measures the profitability of shareholder investment. As a owner of stock or a potential owner of stock in a company it is a good idea to see what the return would be on your investment. This is the number.
Insider Ownership
This is a interesting measurement. This number tells you how much a company is owned by management. The higher the number the more company management owns. If this number starts to decline over time it might be the right time to re-evaluate your stockholder position because management is selling ownership.
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