# Debt to Equity (D/E) Ratio Calculator

You can use this Debt to Equity Ratio Calculator to calculate the company's debt-to-equity ratio. It's so simple to use:

• Select the currency you wish to use (optional)
• Enter the amount of the company's total liabilities
• Enter the amount of total stockholders' equity
• Press the "Calculate Debt to Equity Ratio" button to see the results.

## Debt to Equity Ratio - What is it?

The debt-to-equity ratio is one of the most commonly used leverage ratios. This ratio measures how much debt a business has compared to its equity. The debt-to-equity ratio is calculated by dividing total liabilities by shareholders' equity or capital.

## Debt to Equity Ratio Formula & Example

Formula: Debt to Equity Ratio = Total Liabilities / Shareholders' Equity

Example: If a company's total liabilities are \$10,000,000 and its shareholders' equity is \$8,000,000, the debt-to-equity ratio is calculated as follows: 10,000,000 / 8,000,000 = 1.25 debt-to-equity ratio

Debt-to-Equity Ratio Calculator