Mr Calcu | Debt To Equity Ratio Calculator

Calculate debt to equity ratio for financial analysis with ease and precision

Debt To Equity Ratio Calculator

Debt To Equity Ratio Calculator Guidelines

  • Enter the total liabilities and total shareholders' equity.
  • Click 'Calculate' to get the debt to equity ratio.
  • Review the result to understand the company's financial leverage.

Debt To Equity Ratio Calculator Description

Understanding Debt to Equity Ratio

The debt to equity ratio is a financial metric that indicates the relative proportion of shareholders' equity and debt used to finance a company's assets. It's a crucial indicator of a company's financial leverage and risk.

To calculate the debt to equity ratio, you need to divide the total liabilities by the total shareholders' equity. This calculator simplifies the process, providing you with an accurate ratio based on your inputs.

The debt to equity ratio is used by investors and analysts to assess a company's financial health, risk level, and potential for return on investment. A higher ratio suggests a higher risk due to increased reliance on debt financing.

Example Calculation

Total LiabilitiesTotal Shareholders' EquityDebt to Equity Ratio
$100,000$50,0002.0
$500,000$200,0002.5

Frequently Asked Questions

A financial metric indicating the proportion of debt and equity used to finance a company's assets.

A higher ratio indicates higher financial risk due to increased debt.

Varies by industry; generally, a ratio of 1 or less is considered healthy.

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