Debt to Equity Ratio Calculator is a tool to measure how much debt a business is carrying as compared to the amount invested by its owners
- Debt-to-Equity Ratio:
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- What does Debt to Equity Ratio mean?
- The debt to equity ratio is a financial ratio that indicates the relative proportion of shareholders' equity and the debt used to finance a company's assets. It is usually abbreviated as D/E.
- Formula
- Debt to equity ratio = Total liabilities / Stockholders' equity
- Example
A company has total liabilities as $54.77 billion and total shareholders’ equity as $14.61 billion.
According to the formula, D/E ratio is:-
- = $54.77 / $14.61
- = 3.75 or 375%
History
- Jun 4, 2018
- Tool Launched
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