Question: Why does changing depreciation method (i.e. changing the depreciation numbers in the financial statements) change the debt-to-equity ratio?

Why does changing depreciation method (i.e. changing the depreciation numbers in the financial statements) change the debt-to-equity ratio?

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Changing the depreciation method can indeed impact the debttoequity ratio although the effect might not be immediately obvious The reason for this lie... View full answer

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