Debt to Equity Calculator
Calculate your company’s debt-to-equity ratio to assess financial leverage and risk. Understand how different debt and equity levels affect your financial health and investment potential.
Step 1: Financial Details
Understanding Debt to Equity Ratio
The debt-to-equity ratio measures a company’s financial leverage by comparing its total liabilities to its shareholder equity. It indicates how much debt a company is using to finance its assets relative to equity.
Step 2: Analysis Details
Interpreting Your Ratio
A ratio below 1.0 indicates a company is primarily financed by equity, while above 2.0 suggests high debt reliance. Ideal ratios vary by industry – capital-intensive industries often have higher acceptable ratios.
Debt to Equity Analysis
Your Debt to Equity Ratio
Industry Debt to Equity Comparison
| Industry | Average D/E Ratio | Your Ratio | Risk Level | Industry Norm |
|---|
Financial Health Analysis
Debt to Equity Formula
Debt to Equity Ratio = Total Liabilities / Shareholder Equity
The debt-to-equity ratio is calculated by dividing a company’s total liabilities by its shareholder equity. This ratio provides insights into a company’s financial structure and risk profile, helping investors assess leverage and stability.
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