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:
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.
Let's assume the following values:
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%.
| 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 |