HesapHanem

Debt-to-Equity Ratio Calculator

Measure a company's financial leverage by comparing debt to equity.

Result

1.50
1.50 : 1
150.00%

How it is calculated

The debt-to-equity ratio compares what a company owes with what its owners have invested: D/E = Total liabilities / Shareholders' equity. Both figures come from the balance sheet on the same date and in the same currency. The tool shows the ratio, the same ratio as a percentage (D/E × 100) and a display form such as 1.50 : 1. Equity must be above zero; a company with zero or negative equity gives no result, because the ratio would be meaningless. Liabilities cannot be negative. What counts as a healthy ratio varies strongly by industry, so compare with similar firms.

Worked example

A company has total liabilities of 450,000 and shareholders' equity of 300,000. D/E = 450,000 / 300,000 = 1.5. As a percentage that is 1.5 × 100 = 150%. The tool shows a ratio of 1.50, 150.00%, displayed as 1.50 : 1. For every 1 of equity the company owes 1.50 to creditors.

Try this example →

Common mistakes

  • Using only borrowed money (loans and bonds) as liabilities while another source defines it as total liabilities. Check which definition you are comparing with.
  • Entering total assets instead of equity.
  • Mixing balance sheet dates, such as liabilities from year-end and equity from mid-year.
  • Comparing a bank or a utility with a software company. Typical levels differ greatly between industries.
  • Entering a negative equity figure and expecting a ratio; the tool gives no result when equity is not positive.

Sources

About this calculator

This calculator finds the debt-to-equity (D/E) ratio: D/E = Total Liabilities / Shareholders' Equity. It shows how much a company relies on borrowed money versus its own capital to finance operations — a ratio of 1.5 means the company carries $1.50 of debt for every $1 of equity.

Financial analysts, investors, and lenders use D/E to gauge leverage and risk: a high ratio can signal aggressive growth financed by debt (and greater bankruptcy risk in a downturn), while a low ratio suggests a more conservative capital structure. It's a core metric in credit analysis, valuation models, and loan covenant tests, and comparisons are most meaningful within the same industry since capital intensity varies widely.

Was this helpful?

You can pick up to 3 reactions.

Comments (1)

  • Editorial team

    Sources define debt in this ratio differently: this tool divides total liabilities by equity, while some analysts use only interest-bearing borrowings, which gives a lower figure for the same company. When you compare two firms, make sure both ratios come from the same definition and the same balance-sheet date. Which definition does your own analysis use, total liabilities or borrowings only?

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators