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TeachMeFinance.com - explain debt-to-equity debt-to-equity -- Total Debt/Total Owner's Investment. Measures how much of the company's assets have been acquired by debt versus by owner's funds. If the ratio is greater than 1.0, it means more of the money came from outside sources. Need to closely monitor sales level to ensure your ability to service outside debt. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.