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The debt-to-equity ratio is: Multiple Choice calculated by dividing total liabilities by net worth. calculated by dividing monthly debt payments by net monthly income. determined by dividing your assets by your liabilities. a useless ratio for determining your credit capacity. rarely used by creditors in determining credit worthiness.

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The debt-to-equity ratio is calculated by dividing total liabilities by net worth.

What is the debt-to-equity ratio?

The debt-to-equity ratio is a financial ratio that is used to determine the credit worthiness of a business. It is determined by dividing the total debt by the total equity. The lower the ratio, the higher the credit worthiness of a business.

To learn more about financial ratios, please check: https://brainly.com/question/26092288

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