Enter the total liabilities (debt) and the total stockholders’ equity into the debt to equity ratio calculator. The calculator will display the debt to equity ratio and %.
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Debt to Equity Ratio Formula
The following equation can be used to calculate the debt to equity ratio.
D:E = D/E*100
- Where D:E is the debt to equity ratio
- E is the total equity
- D is the total debt
Debt to Equity Ratio Definition
The debt to equity ratio is a measure of the percentage of total debt to the total equity of an individual or business.
How to calculate debt to equity ratio?
How to calculate debt to equity ratio?
- First, measure the total equity.
Determine the total equity of the individual or business.
- Next, measure the total debt.
Determine the total debt of the individual or business.
- Finally, calculate the debt to equity ratio.
Using the formula above, calculate the debt to equity ratio.
FAQ
What is a debt to equity ratio?
A debt to equity ratio measures the ratio of total debt owned to total equity owned of an individual
