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Debt to Equity Ratio Formula

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Debt to Equity (D/E) shows the proportion of equity and debt a firm that shows the ability for shareholder equity to fulfil obligations to creditors in the event of a business decline. Check FAQs

R D/E = \frac{TL}{TSE} \cdot 100

R_D/E - Debt to Equity (D/E)?TL - Total Liabilities?TSE - Total Shareholders' Equity?

Debt to Equity Ratio Example

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Here is how the Debt to Equity Ratio equation looks like with Values.

Here is how the Debt to Equity Ratio equation looks like with Units.

Here is how the Debt to Equity Ratio equation looks like.

37508.3333 = \frac{45010}{120} \cdot 100

37508.3333 = \frac{45010}{120} \cdot 100

37508.3333 = \frac{45010}{120} \cdot 100

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Debt to Equity Ratio Solution

Follow our step by step solution on how to calculate Debt to Equity Ratio?

FIRST Step Consider the formula

R D/E = \frac{TL}{TSE} \cdot 100

Next Step Substitute values of Variables

∴

R D/E = \frac{45010}{120} \cdot 100

Next Step Prepare to Evaluate

∴

R D/E = \frac{45010}{120} \cdot 100

Next Step Evaluate

∴

R D/E = 37508.3333333333

LAST Step Rounding Answer

∴

R D/E = 37508.3333

Debt to Equity Ratio Formula Elements

Variables

Debt to Equity (D/E)

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

Symbol: R_D/E

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Debt to Equity (D/E)

Total Liabilities

Total Liabilities are the company debts or obligations that are due within one year.

Symbol: TL

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Liabilities

Total Shareholders' Equity

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.

Symbol: TSE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Shareholders' Equity

Other formulas in Debt Ratio category

Go Free Cash Flow

FCF = CFO - CAPEX

Go Free Cash Flow to Firm

FCFF = CFO + (Int \cdot (1 - tax)) - CAPEX

Go Debt to Assets Ratio

DA = \frac{TL}{TA}

Go Business Current Ratio

CR = \frac{CA}{CL}

How to Evaluate Debt to Equity Ratio?

Debt to Equity Ratio evaluator uses Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100 to evaluate the Debt to Equity (D/E), Debt to Equity Ratio shows the proportion of equity and debt, a firm is using to finance its assets, and the ability for shareholder equity to fulfill obligations to creditors in the event of a business decline. Debt to Equity (D/E) is denoted by R_D/E symbol.

How to evaluate Debt to Equity Ratio using this online evaluator? To use this online evaluator for Debt to Equity Ratio, enter Total Liabilities (TL) & Total Shareholders' Equity (TSE) and hit the calculate button.

FAQs on Debt to Equity Ratio

What is the formula to find Debt to Equity Ratio?

The formula of Debt to Equity Ratio is expressed as Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100. Here is an example- 37508.33 = 45010/120*100.

How to calculate Debt to Equity Ratio?

With Total Liabilities (TL) & Total Shareholders' Equity (TSE) we can find Debt to Equity Ratio using the formula - Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100.

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Debt to Equity Ratio Formula

Debt to Equity Ratio Example

Debt to Equity Ratio Solution

Debt to Equity Ratio Formula Elements

Other formulas in Debt Ratio category

How to Evaluate Debt to Equity Ratio?

FAQs on Debt to Equity Ratio

Variable Name