Definition

Access, learn & discover the A-Z's of learning with Sivastatz

D

Debt to equity

Debt to Equity: Debt-to-equity (D/E) is an important aspect in corporate finance. It is a ratio which is calculated by dividing a company’s total liabilities by its shareholder equity. The ratio varies from industry to industry. D/E = Total liabilities/ Shareholder’s equity It gives an insight into the company’s ability to financing its operations with internal accruals as against debt. A higher D/E ratio indicates more risk whereas, a low one may signify that the company is not dependent on debt financing to expand its business.

Deposit growth

This metric shows the percentage change in a company's annual deposits for a given fiscal year compared to the same period in the previous year. Total deposits include the sum of non-interest bearing deposits, interest bearing deposits, and other deposits at the end of the fiscal year

Directional movement indicator

Directional Movement Indicator: The Directional Movement Indicator (DMI) is a movement indicator developed by Welles Wilder based on Plus Directional Movement Indicator (+DMI) and Minus Directional Movement Indicator. The +DMI and -DMI are calculated by comparing the difference between lows and highs and help in the trend's direction and strength analysis.

Dividend

Dividend: Dividends are the share of a company's profit that it pays out to its shareholders. Dividends are a reward for holding the stock and can be in the form of cash or additional stocks. Paying dividends is not an obligation, and companies make the decision on paying dividends based on their profit.

Dividend yield

Dividend yield: Dividend yield is a financial ratio that shows the return reaped by an investor solely based on dividend payments from investing in a stock. Formula for calculating dividend yield: Dividend yield ratio = (Cash dividend per share/ Market price per share) × 100 However, it must be noted that higher dividend yields might not always be a good investment prospect because dividend yield may be elevated because of a dwindling stock price.