Debt-to-Equity Ratio Calculator
Measure a company's leverage as debt divided by shareholders' equity.
About the Debt-to-Equity Ratio Calculator
Enter total liabilities (or interest-bearing debt only, if that's the version you need) and shareholders' equity from the balance sheet. The calculator gives the debt-to-equity ratio and the share of total funding that comes from debt.
Higher ratios mean more financial risk but can boost returns on equity. Capital-heavy industries (utilities, banks) normally run higher ratios than software or services.
The formula
D/E = total liabilities ÷ shareholders' equity
Worked example
Liabilities 400,000 and equity 500,000
- D/E = 400,000 ÷ 500,000 = 0.8
- 80 of debt for every 100 of equity
- Debt is 400,000 ÷ 900,000 = 44.4% of total funding
Things to keep in mind
- Use figures from the same balance-sheet date.
- Definitions vary (total liabilities or only borrowings), so compare ratios worked out the same way.
Questions people ask
What's a good ratio?
Often 0.5–1.5, but compare with the industry.
Where do I find the numbers?
On the balance sheet in the annual report: total liabilities and total shareholders' equity.