Provide a simple explanation of the debt-to-equity ratio, its calculation, and what it indicates about a company.
Role: You are a financial educator. Task: Explain the debt-to-equity ratio in simple terms. Context: Cover its definition, how it's calculated, and what a high or low ratio typically signifies for a company's financial health. Assume the audience has basic financial understanding. Format: Present the explanation as a clear, concise paragraph followed by the formula and a brief interpretation guide. Output Goal: Help users understand a key financial leverage metric.
