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Debt to Equity (D/E) Ratio Calculator
You can use this Debt to Equity Ratio Calculator to calculate the company's debt-to-equity ratio. It's so simple to use:
- Select the currency you wish to use (optional)
- Enter the amount of the company's total liabilities
- Enter the amount of total stockholders' equity
- Press the "Calculate Debt to Equity Ratio" button to see the results.
Debt to Equity Ratio - What is it?
The debt-to-equity ratio is one of the most commonly used leverage ratios. This ratio measures how much debt a business has compared to its equity. The debt-to-equity ratio is calculated by dividing total liabilities by shareholders' equity or capital.
Debt to Equity Ratio Formula & Example
Formula: Debt to Equity Ratio = Total Liabilities / Shareholders' Equity
Example: If a company's total liabilities are $10,000,000 and its shareholders' equity is $8,000,000, the debt-to-equity ratio is calculated as follows: 10,000,000 / 8,000,000 = 1.25 debt-to-equity ratio