⚖️ Debt to Equity Ratio Calculator
Enter a company’s total liabilities and total shareholders’ equity to calculate its debt-to-equity (D/E) ratio.
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What is the debt-to-equity ratio?
The debt-to-equity (D/E) ratio measures how much a company relies on debt versus shareholders’ own money (equity) to finance its assets. It’s a key indicator of financial leverage and risk.
How this calculator works
The formula is: Debt to Equity Ratio = Total Liabilities ÷ Total Shareholders’ Equity. A ratio of 1.0 means a company has equal amounts of debt and equity financing; a ratio of 2.0 means it has twice as much debt as equity.
- A higher D/E ratio generally means more financial leverage and potentially more risk, especially if earnings are volatile.
- A lower D/E ratio suggests a company relies more on equity financing, which is often considered more conservative.
- “Normal” D/E ratios vary a lot by industry — capital-intensive industries like utilities typically run higher ratios than service businesses.
This calculator is for general educational and planning purposes only and is not financial advice.
Last reviewed August 2026