Debt-to-Equity Ratio Calculator

About this calculator

This calculator finds the debt-to-equity (D/E) ratio: D/E = Total Liabilities / Shareholders' Equity. It shows how much a company relies on borrowed money versus its own capital to finance operations — a ratio of 1.5 means the company carries $1.50 of debt for every $1 of equity.

Financial analysts, investors, and lenders use D/E to gauge leverage and risk: a high ratio can signal aggressive growth financed by debt (and greater bankruptcy risk in a downturn), while a low ratio suggests a more conservative capital structure. It's a core metric in credit analysis, valuation models, and loan covenant tests, and comparisons are most meaningful within the same industry since capital intensity varies widely.