Debt to Equity Ratio Analyzer
This calculator helps you assess a company’s financial leverage by comparing its total liabilities to shareholders' equity. The Debt to Equity Ratio is a key indicator of risk and stability, especially useful in investment analysis, credit evaluation, and corporate finance.
Calculate Financial Leverage with Debt to Equity Ratio
Debt to Equity Ratio Formula
Where:
- Total Liabilities – the sum of all short- and long-term debts
- Shareholder’s Equity – total equity held by shareholders
This formula shows how much debt a company is using to finance its assets relative to equity.
A higher debt to equity ratio indicates more leverage and potentially higher financial risk, while a lower ratio suggests conservative financing and greater stability. This ratio is essential for investors and analysts evaluating a company’s capital structure, especially in industries where debt financing is common. It can help assess creditworthiness, compare companies, or track financial health over time.