Debt/Equity Ratio

D/E (Debt/Equity) Ratio Calculation


Debt/Equity ratio calculator is a finance tool to find the ratio between the total debt or liabilities to shareholder's equity of a company. It is a financial risk assessment indicator to measure the financial leverage of a company. A higher debt to equity ratio indicates that the company has less equity and more liabilities, and has more financial risk. A lower D/E ratio is a good signal of a company has more equity and fewer liabilities to running its operations. It is also known as D/E ratio or financial leverage of a company.

Debt/Equity Ratio = Total Debt or Liabilities/Total Equity