How to Use

Enter the company's Total Liabilities.
Enter the company's Shareholders' Equity.
Click the 'Calculate Ratio' button.
View the calculated D/E Ratio and financial leverage assessment.

Tips

The D/E Ratio reflects the relative proportion of debt and equity used to finance the company's assets.
A higher ratio indicates more debt and potentially higher financial risk.
All calculations are performed locally in your browser.

What is Debt-to-Equity Ratio?

Calculation Method

The Debt-to-Equity (D/E) Ratio measures the relative proportion of shareholders' equity and debt used to finance a company's assets. It indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity.

Formula

The formula for calculating D/E Ratio is:

D/E Ratio = Total Liabilities / Shareholders' Equity

Key Terms Explained

Total Liabilities: All debts and obligations the company owes, including short-term and long-term debt.
Shareholders' Equity: The remaining value of the company's assets after deducting liabilities.