The debt-to-equity ratio: Is calculated by dividing book value of secured liabilities by book value of pledged assets. Is a means of assessing the risk of a company\'s financing structure. Is not relevant to secured creditors. Can always be calculated from information provided in a company\'s income statement. Must be calculated from the market values of assets and liabilities. Solution The debt-to-equity ratio: Is a means of assessing the risk of a company\'s financing structure. Note : Debt/Equity Ratio is a debt ratio used to measure a company\'s financial leverage, calculated by dividing a company’s total liabilities by its stockholders\' equity..