Calculate debt to equity ratio for financial analysis with ease and precision
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.
Total Liabilities | Total Shareholders' Equity | Debt to Equity Ratio |
---|---|---|
$100,000 | $50,000 | 2.0 |
$500,000 | $200,000 | 2.5 |