Debt to Equity Ratio Calculator
Calculate your Debt to Equity ratio to compare total liabilities to shareholder equity. A key metric for assessing corporate leverage.
Debt-to-Equity Ratio Calculator
Compare the relative contributions of shareholders vs creditors to fund the business.
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Debt-to-Equity Ratio Calculator
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CALCULATINGD/E RATIO—
LT D/E RATIO—
DEBT %—
EQUITY %—
How to Use Debt to Equity Ratio Calculator in 3 Easy Steps
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Step 1
Enter the total liabilities of the company.
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Step 2
Enter the total shareholder equity.
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Step 3
Review the D/E ratio result.
Frequently Asked Questions
A ratio below 1.0 is usually considered healthy, while 2.0 or higher is considered risky. However, this depends heavily on the industry.
Not necessarily. It means the company is more leveraged. Leverage can increase profits during good times but also increase losses and risk during bad times.
No. Debt can be a cheap way to fund growth, especially since interest is tax-deductible. The key is to maintain a manageable balance.