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A debit cover note is a note accompanying a debit note stating general information regarding the debit note itself. A debit note is a document sent to a debtor stating information about an overdue debt.
The debt-to-equity ratio measures the liquidity of a company by calculating the amount of debt in relation to the stockholder equity (cash). Looking at debt to equity is a quick way to determine if the company has borrowed too much against its projected profit, which could mean that the company is in trouble or will be in trouble soon. Investorglossary defines the debt-to-equity ratio as an indicator of a company's bankruptcy risk.
