The debt$-$to$-$equity ratio, calculated by dividing total liabilities by shareholders' equity, measures the relative proportion of debt and equity used to finance a company's assets. A higher ratio indicates greater leverage and financial risk, as the company relies more on debt financing. Conversely, a lower ratio suggests a more conservative approach with less risk. This ratio is essential for investors and creditors to assess the company$$s financial stability and risk profile. It provides insights into the company$$s ability to meet its debt obligations and the overall health of its financial structure.