Debt to Equity Ratio Formula: Debts To Equity Ratio = Total Debt / Total Equity

Debt to Equity Ratio Definition The Debt to Equity Ratio Calculator calculates the debt to equity ratio of a company instantly. Simply enter in the company’s total debt and total equity and click on the calculate button to start. The debt to equity ratio is used to calculate how much leverage a company is using to finance the company. If a company has a debt to equity of greater than 1 (more debt than equity) then they are considered to be a highly leveraged company and if a company has a debt to equity ratio of less than 1 then they have more equity than debt. Although the debt to equity ratio is most commonly used to calculate the ratio of debt to equity for a company it can also be used for personal financial statements and is termed the personal debt to equity ratio. This debt to equity ratio calculator is very similar to the debt to assets ratio calculator.

How to Calculate Debt to Equity Ratio Let's be honest - sometimes the best debt to equity ratio calculator is the one that is easy to use and doesn't require us to even know what the debt to equity ratio formula is in the first place! But if you want to know the exact formula for calculating debt to equity ratio then please check out the "Formula" box above.