Debt-To-Equity Ratio Calculator
Calculates a business's leverage ratio from total liabilities and shareholder equity
Enter liabilities and equity to calculate the D/E ratio
An assessment of the company's leverage level
Frequently Asked Questions
What is a debt-to-equity ratio?
It measures how much of a company's financing comes from debt versus owner equity. A ratio of 1.5 means $1.50 of debt for every $1.00 of equity. It indicates how leveraged a business is and its financial risk level.
What is a good debt-to-equity ratio?
It varies by industry. Generally, below 1.0 is conservative, 1.0-2.0 is moderate, and above 2.0 is aggressive. Capital-intensive industries (manufacturing, utilities) naturally have higher ratios. Service businesses typically have lower ratios.
Why does D/E ratio matter?
Lenders and investors use it to assess risk. A high ratio means more financial obligation and less cushion for downturns. It affects your ability to get new loans, your interest rates, and how investors value your business.
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