Debt to Capital Ratio

Debt to Capital Ratio Calculation







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Debt to capital ratio calculator is finance or accounting tool to find the ratio between debt to sum of shareholder's equity and debt of a company. It's a financial risk assessment indicator to measure on what proportion the company is running on its equity. A higher debt to capital ratio indicates that the company is running its operations more on debt and shareholder's equity. A lower capitalization ratio is a good signal indicates that the company is using its own resources more than the liabilities for its operations and growth. It is also known as capitalization or financial leverage ratio.

Formula
Debt to Capital Ratio = Debt/Debt + Shareholder's Equity