Debt to Equity Ratio Calculator

Formula

The formula to calculate the Debt to Equity Ratio is:

\[ \text{Debt to Equity Ratio} = \left( \frac{\text{Total Liabilities}}{\text{Total Shareholders' Equity}} \right) \times 100 \]

Where:

\(\text{Total Liabilities}\) are the company debts or obligations that are due within one year.
\(\text{Total Shareholders' Equity}\) is equal to a firm's total assets minus its total liabilities and is one of the most common metrics used by analysts to determine the financial health of a company.

Debt to Equity Ratio Definition

Debt to Equity (D/E) shows the proportion of equity and debt a firm has, indicating the ability for shareholder equity to fulfill obligations to creditors in the event of a business decline.

How to calculate Debt to Equity Ratio

Let's assume the following values:

Total Liabilities (TL) = 45010
Total Shareholders' Equity (TSE) = 120

Using the formula:

\[ \text{Debt to Equity Ratio} = \left( \frac{45010}{120} \right) \times 100 \]

Evaluating:

\[ \text{Debt to Equity Ratio} = 37508.3333333333 \]

The Debt to Equity Ratio is approximately 37508.33%.

Debt to Equity Ratio Conversion Table

Total Liabilities	Total Shareholders' Equity	Debt to Equity Ratio (%)
40000	100	40,000.000000000000
40000	120	33,333.333333333328
40000	140	28,571.428571428572
40000	160	25,000.000000000000
40000	180	22,222.222222222223
40000	200	20,000.000000000000
42500	100	42,500.000000000000
42500	120	35,416.666666666672
42500	140	30,357.142857142855
42500	160	26,562.500000000000
42500	180	23,611.111111111113
42500	200	21,250.000000000000
45000	100	45,000.000000000000
45000	120	37,500.000000000000
45000	140	32,142.857142857145
45000	160	28,125.000000000000
45000	180	25,000.000000000000
45000	200	22,500.000000000000
47500	100	47,500.000000000000
47500	120	39,583.333333333328
47500	140	33,928.571428571428
47500	160	29,687.500000000000
47500	180	26,388.888888888891
47500	200	23,750.000000000000
50000	100	50,000.000000000000
50000	120	41,666.666666666672
50000	140	35,714.285714285717
50000	160	31,250.000000000000
50000	180	27,777.777777777777
50000	200	25,000.000000000000