Debt-to-Equity Ratio

Debt-to-Equity Ratio Calculator

Measures a company’s financial leverage by comparing total debt to shareholders’ equity

?All current and long-term debts and obligations
?Assets minus liabilities (book value)

Capital Structure Analysis

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Total Liabilities / Shareholders’ Equity
Conservative Moderate Aggressive

Interpretation:

The D/E ratio shows the relative proportion of shareholders’ equity and debt.

Industry Standards:

  • Below 0.5: Conservative financing (less risk)
  • 0.5-2.0: Typical range for most industries
  • Above 2.0: Aggressive financing (higher risk)

Note: Ideal ratios vary significantly by industry.