Debt to Equity Calculator — Calculate Your Financial Ratio

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

USD
USD

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

5%
10%

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

Summary
Industry Comparison
Financial Analysis

Your Debt to Equity Ratio

0.67
Healthy: Low Financial Risk
Total Debt
$500,000
Total Equity
$750,000
Financial Leverage
1.67
Risk Assessment
Low Risk

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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