btcapital

Usually lower debt ratios (like d/e or d/a) are preferable. Im not fully sure if a lower leverage ratio is improving, although it would seem like it would be better if its the same rationale as the debt ratios. Then again, a lower leverage ratio leads to lower ROE and lower growth rate, which leads to lower stock price in DDM. I guess it may depend on what you mean by "better"? anyone have any thoughts?