Debt/Equity ratio, which one to refer?

Question

When checking Debt/Equity of one's company stock, i found two balance sheets in annual report. One is consolidated and the other one is non consolidated, which one i should refer?

Answer 1

Use the consolidated balance sheet.  That combines all of the company's businesses into one report.    Ratios such as D/E are most useful when compared to other companies in the same industry.   Using the consolidated report will give you a better comparison of bottom line results.

The non consolidated financial reports show a breakdown by business segment.  They can be useful for analyzing the company to see where they are doing well.  And give valuable insight into how they will do going forward.